According to a recent report produced by the Council of Mortgage Lenders (CML), customers who are re-mortgaging and first time buyers are ‘buoying the market’.
For the first time in two decades, the number of first time buyers has exceeded the number of home movers, as the mortgage market remains subdued. In April this year, gross mortgage lending fell by 11% to £18.4bn, in comparison to the March figure of £20.7bn.
The lack of activity in the housing market has been blamed on the inactivity of buy-to-let and home movers, by the CML. This has resulted in first time buyers being responsible for the largest share of mortgage loans for the first time since 1996.
The number of first time buyers during the last year has reached 345,000, which is the highest level since the beginning of 2008, according to CML. The reason for this increased activity among first time buyers may be due to the schemes launched by the government to help them get onto the property ladder.
Current homeowners may be cautious in the run up to the general election and forthcoming Brexit, choosing to stay in their current homes. Landlords have been affected by the tax changes, causing the buy-to-let sector to slow down. The trade body warned that fewer properties were being placed on the market, due to the inactivity of home movers. However, this did seem to have created a window of opportunity for first time buyers.
Mortgage advisers spend time studying CeMAP courses, so they are able to deal with a variety of situations in the mortgage market.
