Once again, first-time buyer mortgages are increasing year-on-year; which is great news for the housing crisis. Read more about the rise and how mortgage brokers could further help first-time buyers here.

An Influx of New Buyers Every Month

Trade lending body UK Finance, who represent over 90% of all mortgage lenders in the UK, has revealed that there were “35,500 new first-time buyer mortgages completed in August,” equating to a 2% year-on-year increase.

With rumours previously circulating that the UK government may be promoting rent-to-buy in the market – which didn’t occur – as well as a general upward trend in house purchasing, many first-time buyers are now dipping their toes into the property pond.

A total of 6,000 buy-to-let home purchase mortgages were completed in August, which was good news, despite there being a 13% decrease on the same period last year, equating to a drop of 20% on lending value year-on-year.

Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance, said:

“Buy to Let re-mortgaging saw relatively strong growth in August, due in part to the number of two-year fixed deals coming to an end. This suggests that while new purchases in the buy to let market continue to be impacted by recent tax and regulatory changes, many existing landlords remain committed to the market.”

Brian Murphy, Head of Lending for Mortgage Advice Bureau, continued the positive outlook for first-time buyers, adding that it is “positive news for the rest of the property market, as they do underpin the housing ecosystem.

“If investors are currently less active on the purchase side, the fact that those taking their first step on the ladder are purchasing available stock may help to ensure that increased availability of properties at entry level doesn’t cause overt downwards pressure on pricing, thus keeping the market stable in line with the general direction of travel for 2018 so far.”

Overall, market confidence has led to an increase of first-time buyer mortgages, which brokers can help with immensely.

Brokers Offer a Helping Hand

Mortgage brokers will, essentially, take some of the work out of getting a first-time mortgage. They’ll scan the market to find competitive deals that suit your specific lending needs.

Experienced brokers often have established working relationships with banks and building societies, too, that can ensure your application runs smoothly. Outside of financial advice, a broker can also give informed aid in cases such as home insurance and other household costs.

While brokers may not, by their business connections, be able to suggest the ‘best’ deal on the market, they will almost always engineer a ‘competitive’ deal for their client. They know the industry inside out and can help protect first-time buyers from any financial naiveté.

Brokers can, then, through their expertise, help appease first-time buyers’ anxieties around the housing market, a relationship that hasn’t quite been repaired to this day. By being exposed to sound advice, first-time buyer mortgages can become less of a place of risk and more as a place of opportunity. A general increase in confidence can only translate to more first-time buyers and a better market.

Are You Looking to Get onto the Property Ladder?

If you’re encouraged by the news that first-time buyer purchases are on the rise, then our friendly and experienced mortgage brokers can help. Get in touch with us today to learn more about first-time buyer mortgages and how much you could borrow.

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