Over the last year, a combination of low-interest rates, improved home availability and strong competition between lenders have made it easier for first-time buyers step onto the property ladder.
In addition to this, government schemes such as the Help to Buy equity loan and reduced stamp duty have made the dream of owning a first property more of a reality for thousands of people.
In fact, according to the latest mortgage market tracer from the Intermediary Mortgage Lenders Association (IMLA), first-time buyers’ fortunes have improved more than any category of borrower in the last year.
So, if you’ve been thinking about buying your first property for a while, now could be a great time to start seriously considering getting on the property ladder.
First-time Buyer Mortgage Applications on the Rise
According to the IMLA mortgage market tracer, approved first-time buyer mortgage applications have risen to 74% in the last quarter of 2017 from 53% in the same period of 2016.
The statistics also show that in 2017, 88% of first-time buyers secured a mortgage offer, up from 73% during the same time 2016. In addition, 84% of these offers went on to complete compared to 72% in the previous 12 months.
UK Finance data also showed that first-time buyer numbers reached a ten-year high in 2017. The new IMLA report suggests that this could be down to these higher mortgage approval rates.
Higher Approval Rates, no Extra Burden
Despite a rise in mortgage approvals for first-time buyers, the newest data shows no need for concern about the possibility of irresponsible lending.
Encouragingly, the IMLA report shows that although the number of approved mortgages has increased for first-time buyers, there has been no increase in the burden of mortgage repayments. In fact, in December 2017, UK Finance data showed average first-time buyer mortgage repayments were equivalent to 17.1% of income – down 0.2% from December 2016.
A Good Time to be a First-time Buyer
For prospective first-time buyers, the current buying landscape paints a really positive picture.
Kate Davies, Executive Director of IMLA, commented on the report, saying: “First-time buyers have benefited from widely available and competitively priced deals, even before the extra confidence boost of the Stamp Duty exemption announced in the Autumn Budget.”
She continued: “It is encouraging to see that mortgage repayments have remained stable even as more first-time buyers make the step up onto the housing ladder.”
Buy your first home with Fitzwilliam Capital Partners
At Fitzwilliam Capital Partners, we specialise in creating beautiful homes across some of the most thriving areas of the UK.
From one bed studios to four bed detached houses, our homes suit a huge range of housing needs. With a focus on developing property in locations where economic and social growth is expected, we enable first-time home buyers to purchase high-quality property in areas we’d be proud to call home. Take a look over our selection of properties ideal for first-time buyers.
If you’d like more information on how Fitzwilliam can help you to step up onto the property ladder, contact us today or call us on 0161 641 3100.