New data from Reallymoving shows that the percentage of first-time homebuyers in the mortgage market has increased, thanks to the low rates being offered by lenders.
There was a drop in the number of these buyers during the period from 2019 to 2020, with first-time buyer numbers falling to 51% from 56% in that time. Now, the decision by lenders to reintroduce their mortgage products with high loan-to-value (LTV) levels and the current competition over mortgage rates has seen a revival in their numbers.
Reallymoving got its figures by looking at quotes for conveyancing, and they appear to show that 55% of the buying market is now made up of first-time buyers – back almost to the level it was at two years ago.
The war over interest rates that is currently being conducted by lenders in the wake of the pandemic has ensured that the affordability of the average product has stayed at the same level, meaning first-time buyers are not priced out of the market. There has been a price rise of 2.5% for these buyers, while for those looking to move to somewhere bigger it has been 10%.
Reallymoving Chief Executive Rob Houghton stated that while rises in house prices and affordability were undoubtedly connected, first-time buyers were benefiting from numerous government schemes to help them as well as very low mortgage rates.
Advisors who have finished their CeMAP training courses will want to take advantage of this new rise in potential first-time buyers to secure their business as clients.