Average first time buyers’ deposits are dropping while mortgage values are increasing.
Not much of a surprise, really. Lenders have been competing for first time buyers, and are offering higher loan-to-value (LTV) mortgage products. Buyers with smaller deposits can borrow enough to get their first home.
David Newnes, director of LSL Property Services, (owners of estate agents Your Move and Reeds Rains) summed it up:
“First-time buyers are returning to the market in their droves, as the property market emerges fully from the shadow of the financial crisis.”
Further down, Newnes says something more interesting:
“As with the entire market, prices are quickly climbing upwards, but lower rates mean that mortgage repayments are still affordable, despite new buyers having to purchase property with a higher price tag.”
Buyers are starting to borrow more of the value of their first houses, but competition is keeping the interest rates low. The market is waking up, and it’s an interesting time to look into buying your first home. It’s also more important than ever to shop around – compare products across the board. That’s what we do, so give us a ring for independent advice.