The mortgage market is once again being driven by the first time buyer. Not since 1995 has this vital sector been seen so dominant. It now makes up for more than half of all new mortgages, according to The Halifax.
Recent findings show there has been a rise in the number of new first-time buyer mortgage applications completed during 2018. The number of completions was at the highest level since 2006. This is good news all round and including for the property and financial services professionals that supply this eager market.
With housing costs both for buying and renting so high, how is it there are more first time buyers in the market than we’ve seen in years?
Part of the reason is that with national average rents of over £900 per month it’s really bringing into sharp focus first time buyers’ best long term interests and for many it means getting onto the property ladder as soon as possible. Many first time buyers are increasingly aware they could be paying far less per month for a mortgage than on rent.
Additionally, there are better than ever incentives for first-time buyers.
For example; currently there is stamp duty relief of up to £300,000 and then there is the help to buy scheme.
The help to buy scheme has been extended to 2023 and since its launch back in April 2013 has helped more than 150,000 first time buyers get into the property ownership market.
Where first time buyers are fortunate enough to have relatives with capital assets, there are now an increasing number of lender schemes that help first time buyers raise deposits through equity release or other gifted arrangements.
If you are a first time buyer and looking for advice from a mortgage broker in Liverpool, get in touch with True Cost Mortgages today.