First time buyers issued 'positive' update as number of homes for sale booms
After years of hurdles and roadblocks for first-time buyers looking to get their foot on the property ladder, the housing market finally appears to be righting itself. With more homes now up for sale and mortgage applications at a post-pandemic high, it looks set to become a bull market for first-timers.
The collective value of all first-time buyer loan applications has reached a seven-year high of £11bn, as younger homeowners take advantage of stalled house prices and a wider number of mortgages on offer. At the same time, across the North West, there has been a 77 per cent increase in homes up for sale - making it easier than it has been for years to purchase your first property.
With economists predicting that interest rates will fall before the end of this year, competition among mortgage lenders has made loans more competitive for first-timers in the property market. The average loan to a first-time buyer during the first three months of the year was £215,000 - up by eight per cent on the year before, a significant rise over re-mortgagers and people moving homes.
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According to mortgage provider Legal and General, first-time buyer financial products have remained their most searched-for service. However, their research also indicated that almost half (47 per cent) of all home purchases were now being supported by the "Bank of Family".
Liam O’Hara, head of mortgages at first direct, explained: “It’s been a positive start to the year across the mortgage market, with the volume of first-time buyer applications ahead of home movers and remortgages, shooting up to numbers not seen in nearly two years. The month of February was the