The number of mortgages taken out by people purchasing their first home has reached its highest level in seven years, according to figures released by the Council of Mortgage Lending.
The amounts being borrowed are also the largest seen since 2007. First-time buyers’ eagerness to enter the property market does not seem to have been dampened by recent hikes in house prices.
Although property prices rose at a slower rate during the last three months, first-time owners were keen to obtain mortgages during June, even as prices reached a possible peak. The number of mortgages taken out by first-time buyers was 18.7% higher than the same time last year and 7.1% higher than it was in May, 2014.
Loan amounts were also the biggest seen since September 2007, and the size of the average deposit went up compared with a year ago.
An analyst from Savills, Sophie Chick, said that the increase in demand for mortgages from first-time buyers was because of “pent up demand” following the financial crisis. She added that there was no data as of yet to show the effect of the tougher lending measures that were introduced by the Bank of England on June 26th, which could reduce the number of first-time buyers in future.
As the housing market changes, obtaining the right advice has never been more essential for those buying a home for the first time and the number of people opting for CeMAP training in Birmingham, Leeds, Liverpool, and other major cities has been increasing to meet the rising demand for mortgage experts.