The number of mortgages sold to first time buyers (FTBs) increased dramatically between the second quarter of 2011 and the first quarter of 2012.
The Financial Services Authority mortgage sales data has revealed that mortgages approved to first time buyers for properties worth between £120,000 and £250,000 rose by 53% compared to the same period last year.
It is believed that the rise is due to the rush of buyers to the market who wanted to take advantage of the Stamp Duty holiday for properties worth between £125,000 and £250,000, which ended on 31 March this year.
Over all the property price brackets, however, sales to FTBs increased by 6.7% and for remortgages rose by 9.8%.
Fixed rate mortgages were the most sought after, garnering 62.5% of sales, while tracker and discounted variable rate products attracted 23.2% and 7.8% respectively.
The most popular loan to value (LTV) tier continued to be the 50%-75%, accounting for 37% of sales over the period, while sales in the 85% - 90% and 90%-95% LTV tiers increased by 21.8% and 23.3% respectively compared with the same period in 2010/11.
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