The amount of first time buyers in the mortgage market has increased for the fourth month in a row, according to the most recent mortgage monitor report published by residential chartered surveyors e.surv. The increase actually covers small deposit buyers, which incidentally covers most first-time buyers.
It is good news for anybody trying to get on to the property ladder for the first time, showing them that there are a lot of prospects out there and many people in similar situations are finding success.
Mortgage Market on the Up Overall
The report revealed that the mortgage market has halted the recent decline it has been in and has actually started to grow over the last month, thanks in no small part to the increase of small deposit transactions. With the General Election due soon, and such events often convincing people to hold tight and wait to see what happens before continuing their house hunting activity, this is an unexpected but welcome fillip for the UK housing market.
The portion of the mortgage market made up by the small deposit buyers only rose a little – up to 21.5% in April from the previous month’s 21.4% – however it is still a big rise from the end of last year, when the amount of small deposit buyers had stalled at just over 16%.
First Time Buyers Are the ‘Lifeblood of the Property Market’
Richard Sexton, Director of e.surv, spoke about more positive news for first time buyers. He said, “There was even better news for first time buyers and others with small deposits. That is not to say there aren’t significant challenges ahead, but data from the market this month is overwhelmingly positive. First time buyers are the lifeblood of the property market. Low rates and better availability have helped people buy their first home. Their presence then allows others to move up the ladder and keep the whole market moving.”
Mr Sexton continued, “There are historically low mortgage rates on offer across the board and this has helped the overall market grow this month. The proportion of borrowers with large deposits has improved compared to March but still remains below the 35% mark. Northern Ireland is the best place in the UK to get on the ladder if you only have a small deposit saved. However, other regions such as the North West and Yorkshire have provided equally fertile ground for new borrowers so far in 2017.”
With 67,035 loans approved in April, a number which has risen significantly since last month and from the same month last year, the outlook is growing increasingly positive for first time buyers. That, in turn, is very positive for the rest of the property market.