The beginning of this year has seen a huge rise in demand from first time buyers according to Yorkshire Building Society.  The lender says that the increase in first time buyers seeking a 95% mortgage has increased 91% year on year from January 2016 to January 2017.

In 2016 more mortgages were given to first time buyers than at any time since 2007, and in spite of the rises in house prices, low interest rates mean that repayments are relatively affordable.  The Council of Mortgage Lenders has also reported that remortgages surged by 20% over the last year as current homeowners take advantage of the low interest environment and excellent fixed-rate terms.

Whilst the government-backed help-to-buy mortgage guarantee scheme has come to an end, there are still viable mortgage options available for first time buyers with a smaller deposit, and demand for property in these price ranges has remained robust.  There are still government-backed schemes available for those saving for a deposit, including the help-to-buy ISA or an equity loan available on new build properties.

This is good news for first time buyers struggling to get a foot on the property ladder.  The government introduced changes in stamp duty which took effect last April - imposing a 3% surcharge for investment buyers and those with more than one property.  This has had the desired effect, and whilst there is still competition for property at this level, there is a much better chance of securing a property for those just starting out.

Planning for and saving for your first home can be daunting, but talking to a mortgage advisor and getting a full picture of the mortgage options available to you is advisable.  Using a mortgage broker is worthwhile as they will take care of all the paperwork and package up the application in the best way to get the best possible outcome, reducing the stress and increasing the likelihood of the application being successful.

If you would like any advice regarding mortgages or buying your first home, do get in touch and we would be delighted to help.