By reading mortgages news recently, you would be forgiven for thinking that the first time buyer had become extinct thanks to rising deposit requirements, stricter lending criteria and the recession, however, according to one mortgage broker firm this is far from the truth.
In fact, the mortgage broker in question, John Charcol, has stated that in their April business figures one in five mortgage applicants was a first time buyer.
“The return of significantly more first-time buyers in to the market this year, despite the lack of low-deposit mortgages, is one of the best indicators of confidence we’ve got at the moment,” said Ray Boulger of John Charcol. “A surprising number of first-time buyers have managed to find deposits of at least 25pc in order to access a wider choice of mortgages and get a cheaper deal.”
In October last year, only 4 percent of applicants were first time buyers so it is encouraging to hear that April showed an increase to a huge 21 percent in their mortgage applicants and many mortgage advisors are also seeing an increasing number of enquiries as first time buyers have waited a long time saving their deposits and want to take advantage of the decrease in house prices.