11 Nov

Surge in number of mortgages for first-time buyers

Surge in number of mortgages for first-time buyers

First-time buyers looking to purchase properties for sale in the UK will be pleased to hear that there has been a rise in the number of mortgages available for them.

According to research by moneysupermarket.com, there has been a 22 per cent increase in the number of financial products catered for first-time buyers since the start of the year.

This includes a 76 per cent rise in the number of mortgages at 80 per cent loan-to-value (LTV), meaning that the potential homeowner will have to pay 20 per cent of the value of the property as a deposit.

The findings also revealed that the mortgage rates for products with low deposits are also improving, with the average rate for a mortgage at 90 per cent LTV dropping to 5.82 since January 2010, a decline of 0.33 per cent.

Site editor of moneysupermarket.com Clare Francis said that these results are "encouraging".

"First-time buyers are integral to keeping the housing market moving - if there aren't enough people jumping on at the bottom the market will eventually grind to a halt," she remarked.

This comes after Rightmove revealed earlier this week that the number of first-time buyers purchasing properties for sale in the UK rose from 22 per cent to 26 per cent over the previous quarter of 2010. ADNFCR-1222-ID-800230993-ADNFCR

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