Despite the perceived difficulty of entry onto the property-owning ladder, due to deposit and affordability issues, the First-Time buyer market has held up remarkably well over the last decade, which encompasses the peak lending years of 2006 and 2007.

Moving homeowner transactions halved between 2006 and 2016, whilst first-time buyer numbers only declined by a modest 16%, and reached a record £53bn of borrowing in 2016.* As we go through 2017, borrowing for first-time buyers continues on an upward trajectory, with April showing a 7.9% year-on-year increase.**

Why it’s doing well…

There are numerous initiatives in place that have helped deliver support for the first-time buyer over the last few years. Plus there has also been a great deal of ‘input’ from the Bank of Mum & Dad!

With regard to the initiatives, the Help-to-Buy schemes, for example, have assisted 150,000 first-time buyers. This has accounted for over 40% of the increase in the first-time buyer numbers since the schemes were introduced in 2013.*

Help-to-Buy has enabled many buyers to have access to some of the better rate deals, by only requiring a smallish deposit of, say, 5-10%. Off the back of this it’s also encouraged some lenders to offer – outside help-to-buy schemes – similar 90% loan-to-value deals, which first-timers could also consider.

Where we can help

Understandably there are endless options to assess, and that’s why it makes sense to take advice.

Not only could we assist in finding the most suitable deal for your needs, we may be able to help protect your all-important credit rating. Conversely, if you applied directly and contacted a wide number of lenders, you may find that extensive searches could mean that it impacts badly on your credit rating, as the systems may interpret this as someone who is desperate for cash!

Through our market knowledge, we would have a far better feel, enabling us to opt for products where we believe you’re more likely to find something at a rate and cost that best meets your needs. Plus, it will hopefully protect your credit rating along the way.

To hear more, please get in touch.

(Sources: *Intermediary Mortgage Lenders Association, April 2017 report; **Council of Mortgage Lenders, April 2017 figures, June 2017 release)


Who are the first-time buyers?

20-30 years ago the average first-time buyer would have been in their early/mid 20’s and would have found it relatively easy to get a mortgage. It’s all changed now…

– Average age = 30

– Average loan size = £136,500

– Average loan-to-value = 84.8%

– Average income multiple for a loan = 3.57

– Average proportion of household income to service the loan = 17.3%

(Source: Council of Mortgage Lenders, April 2017 figures, June 2017 release) 


Your home may be repossessed if you do not keep up repayments on your mortgage.