New figures from UK Finance has revealed the number of first time buyers has reached its highest level in a decade. An estimated 359,000 people bought their first home in 2017, the highest level since 2007, despite the average deposit almost doubling in size.
The number of first time buyers entering the housing market has grown in recent years due to an increase in lenders offering exclusive deals to help first-time buyers take their first step onto the property ladder, help to buy housing schemes growing in popularity and the bank of Mum and Dad footing some of the bill.
To give wannabe homebuyers an extra boost, the government has now scrapped stamp duty fees for first-time buyers purchasing properties valued up to £300,000 outside of London and up to £500,000 inside of London.
House price rises are also slowing which is bad news for home movers but good news for first-time buyers. As the government pushes ahead building as many new build houses as possible by 2020, to hit their 200,000 new homes target, and some landlords sell-up due to the recent tightening of regulations, there is expected to be an increased number of properties available for first-time buyers.
During the first few months of this year alone, we’ve witnessed a surge of new mortgage products targeting first-time buyers, with some extremely competitive criteria. For example, LTVs up to 95% have become the norm with many high street lenders plus some also offer cashback incentives to help buyers during the costly first couple of months. For an overview of the different types mortgages available to first-time buyers, check out our quick guide.
For more information on the latest mortgage deals available for first-time buyers, call our team of whole of market Mortgage Brokers for a free no-obligation quote on 01702 538 800 or arrange a call back.