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2009 first time buyer applications soar

2009 first time buyer applications soar

Category: Mortgages

Updated: 20/05/2009
First Published: 20/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
There is further evidence that the housing market is slowly coming back to health with the news that the percentage of new mortgage applications made by first time buyers has risen notably in 2009.

First time buyers now represent a fifth of all new mortgage applications, according to John Charcol's Monthly Mortgage Index.

The welcome trend of increasing confidence of consumers trying to get on the property ladder started returning at the beginning of the year, the index shows.

First time buyers are currently making just over 20 per cent of total mortgage applications, up from just five per cent at the end of 2008.

Ray Boulger, of John Charcol, said that the return of first time buyers to the market, despite the dearth of high loan-to-value (LTV) mortgages, is one of the best indicators of confidence.

"A surprising number of first time buyers have managed to find deposits of at least 25 per cent in order to access a wider choice of mortgages and get a cheaper deal," he continued.

"Many branches of the bank of Mum and Dad have proved more robust than many of our high street banks."

Given the number of experts and associations that have decried the lack of first time buyers in the sector, the figures are encouraging although real sales statistics will determine when genuine progress has been made.

Deals such as the Lloyds TSB's 'Lend a Hand' offer should help that happen. Launched today, the 95 per cent LTV mortgage, which is aimed at first time buyers and takes a legal charge on parents' savings account, has been widely praised.

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