First time buyer confidence returning - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

First time buyer confidence returning

First time buyer confidence returning

Category: Mortgages

Updated: 18/11/2009
First Published: 18/11/2009

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 It is now over 6 months old so the content may be out of date.

Falling house prices and a revival in the mortgage market have given potential first time buyers renewed confidence, according to a new survey.

Research from Equifax found that 70% of first time buyers felt more confident about stepping onto the property ladder as a result of the drop in property prices.

Meanwhile, the introduction of a number of new products for first time buyers was also believed to have had an effect, with 75% of respondents revealing they had put their plans on hold in the last year because of the lack of mortgage products on the market.

However, raising a reasonable deposit still represents a challenge for a number of first time buyers, with only 12% having a deposit of more than 20% of the property value and over a quarter (26%) having just a 5-10% deposit.

For the 35% that said they had less than 5% deposit, the difficulties in securing a mortgage seem set to continue.

Two thirds of respondents also revealed they had found it difficult to get a competitively priced deal, with over a third (38%) blaming this on the size of their deposit.

"Clearly the challenging financial conditions are still making it hard for first time buyers to get on the property ladder," said Neil Munroe, External Affairs Director at Equifax. "But what our latest research shows is that there is a new level of confidence that probably hasn't existed for the last 12 months or so."

Find the best mortgage for you - compare 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 Any products featured may be withdrawn by their provider or changed at any time.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

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.