First-time buyer activity levels at four-year high - Mortgages - News - Moneyfacts


First-time buyer activity levels at four-year high

First-time buyer activity levels at four-year high

Category: Mortgages

Updated: 11/03/2013
First Published: 11/03/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

First-time buyers appear to be dipping their toes back into the waters of the mortgage market, with levels of activity in the sector climbing to the highest level for four years during February 2013, according to new figures from Connells Survey & Valuation.

Valuations instructed for first-time buyer homes rose by 27% month-on-month, representing an annual increase of 23%.

The research also showed a 25% monthly increase in home-mover activity last month, whilst the number of people remortgaging soared by 44% compared with this time last year. Remortgage valuations accounted for over a quarter of all property valuations for the first time since January 2012.

Unprecedented demand for rental property has had a positive effect on the buy-to-let mortgage market and, in turn, landlords' pockets. Activity in the buy-to-let market increased annually by 26%, with levels soaring by 24% since the beginning of this year.

John Bagshaw, corporate services director at Connells, welcomed the boom in first-time buyer activity, although he believes the Funding for Lending Scheme (FLS) is benefiting those with larger deposits.

"For the housing market things are looking increasingly positive as the growing number of first-time buyers feed into overall activity," he said.

"Current mortgage holders are the biggest winners from FLS so far. The greater bulk of new deals emerging due to greater credit availability are aimed at existing homeowners, with sufficient equity to help bolster lenders' balance sheets," he observed.

What next?

Search all mortgages
Mortgage repayment calculator
How much can you borrow calculator
Compare buy-to-let mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.