As investment in buy-to-let and property values remain static, first time buyers are demonstrating greater optimism when it comes to buying a home.
The number of first time buyers who believe that buying a property will be difficult has fallen from 39% in 2016 to 33% this year. The number who consider rising property prices to be the biggest obstacle for them has also fallen to 27% from 37% last year. However, according to Aldemore, specialist lender, more people are concerned about their ability to secure a mortgage.
In July this year, £5bn was loaned to first time buyers, 14% more than the same time last year. According to Nationwide, these buyers are finding it a little easier to find a larger deposit, without worrying about being priced out of the market due to property values rapidly increasing. Similarly, the buy-to-let market has slowed down due to the introduction of a number of tax changes, which may impact on landlords. This has reduced the competition for first time buyer homes.
However, there are still plenty of challenges facing first time buyers. According to UK Finance data, they borrow an average of 3.6 times their income to buy a property. The average first time buyer borrows £139,000 and has a deposit of £24,529 or 15%.
Mortgage advisors have studied on CeMAP courses so that they are able to help all buyers, especially first time buyers who may need more information about mortgage products which are right for them.