First Time Buyers
Fri 13 Jan 2017
Figures released this week continue to show that the first time buyer sector of the housing market is strong.
There were more first-time home buyers in 2016 than at any time since the start of the financial crisis, says Halifax bank.
It also found the average price of a first home in the UK broke through the £200,000 barrier for the first time.
Meanwhile, the average first-time deposit more than doubled compared with 2007 to stand at more than £32,000.
And 60% of first first-time buyers’ mortgages were for 25 years or longer, up from 36% a decade ago.
The Halifax First-Time Buyer Review said the number of buyers entering the market hit 335,750 last year, up 7.3% on 2015.
That is the highest level since the start of the financial crisis in 2007, and 75% higher than the all-time low of 192,300 first-time purchases seen in 2008.
The average first-time deposit across the UK as a whole a decade ago was £15,168. It had increased 113% by last year to £32,321.
Rising property prices mean first-time buyers are increasingly taking out longer mortgages.
Last year 60% of first-time buyers took out a mortgage of 25 years or longer. More than a quarter (28%) took out a 30 to 35-year term mortgage.
Ten years ago only 36% of people getting on to the first rung of the property ladder borrowed for longer than 25 years. Nearly two thirds (64%) of first-time buyers took out a mortgage for between five and 25 years.
However, there are massive regional variations.
Halifax housing economist Martin Ellis attributed the increase in first-time buyer numbers to continuing low mortgage rates and high levels of employment which had “supported the market”.
If you are a first time buyer and need advice on a mortgage do call us. We can put you in touch with independent advisers who can search the whole of the market to get the most suitable deal for you.