Fewer first time buyers despite lowest mortgage rates

August 1, 2016 by Brendan O'Neill

Rates

Although the cost of fixed rate mortgages is at its lowest in many years, and continues to fall, the number of first time buyers has dropped by a third during the last 10 years.

According to Moneyfacts, interest rates during the first half of the year have fallen to record lows, and “show no signs of stopping.” The company also says that interest rates are continuing to fall due to increased competition between lenders. However, despite rates being at their lowest, a large number of first time buyers struggle to save the deposit they need to get onto the property ladder.

Recently released Government data indicates that the number of first time buyers has fallen in the last decade. According to a report produced by the Halifax, the average house price is equivalent to 12.5 times the local income in Brent, north London, the area with the most unaffordable property.

The report by the Halifax also shows that London has the highest prices for first time buyers, with an average property value of £384,000. In Northern Ireland, the average property price is £110,000.

Once on the property ladder, home owners have access to some of the lowest interest rates available. People buying a home now may find a much lower interest rate than those people who bought a home in January this year.

Mortgage advisers are required to study on a CeMAP course so that they are qualified to help buyers find the most suitable product for their circumstances.