More activity from first-time buyers, research shows
First-time buyers increased their share in the mortgage market in
October, compared with the previous month.
Figures released by the John Charcol Mortgage Index revealed that
first-time buyer activity rose to 15.3 per cent as a proportion of
total purchases last month, compared with just 10.4 per cent in
Drew Wotherspoon, from John Charcol, commented: "Several lenders
have improved their pricing and availability of mortgages to 85 and
90 per cent [loan-to-value] over the last month and so there are
some encouraging signs for would-be first-time buyers."
However, he pointed out that many people attempting to get on the
property ladder for the first time were still being priced out of
the market because they did not have an adequate deposit or were
failing to measure up to strict lender requirements.
Research released by the Council of Mortgage Lenders earlier this
month demonstrated that first-time buyers were rushing to take
advantage of the stamp duty holiday.
Almost one-third (32 per cent) of all loans issued to first-time
buyers in September were for properties valued at between
£125,000 and £175,000.