Growing numbers of first-time buyers secured a mortgage in March, with a total of £4.9 billion borrowed by first-time buyers during the month.
New data from the Council of Mortgage Lenders (CML) showed that first-time buyer activity increased in March this year, with more loans going to first-time buyers than in any other month of March since 2007.
CML figures showed that 31,500 loans went to first-time buyers during March this year, an increase of 12% compared to March 2016.
Mortgage rates remain very low, which partly accounts for the boost in the number of first-time buyers securing their first mortgage.
Given the series of changes implemented recently which affect the buy-to-let market, fewer potential investors are taking the plunge and buying a buy-to-let property. This is freeing up housing stock for buyers, and making it easier for them to climb onto the property ladder.
Director General of CML, Paul Smee, who predicts a brighter future for first-time buyers in terms of mortgage lending, said: “Overall, lending trends have remained reasonably consistent.”
He continued: “As we head into the summer, we expect a continuation of these trends, with both first-time buyer and remortgage lending expected to maintain momentum in the light of the very attractive deals currently available.”
This is welcome news for first-time buyers, and there are a range of attractive first-time buyer mortgages to choose from, with some deals needing a deposit of only 5%. However, the more first time-buyers can save for a deposit, the better.
So demand for lending is strong, with many borrowers taking advantage of the record-low interest rates.
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