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First time buyers poised to return?

First time buyers poised to return?

Category: Mortgages

Updated: 17/03/2010
First Published: 17/03/2010

MONEYFACTS ARCHIVE
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Potential first time buyer (FTBs) are seeking mortgage advice in their droves, suggesting they could drive the property market forward during 2010.

Some 42 per cent of enquiries for whole of market mortgage advice in February were from FTBs looking to purchase their first home, data from unbiased.co.uk has revealed.

The proportion of requests from FTBs for advice has remained high since the start of the year.

Moneyfacts.co.uk yesterday reported that the number of mortgage deals that require a small deposit has markedly increased since the beginning of 2010, providing FTBs with a greater chance of securing a property.

"It is encouraging to see first time buyers are back out in force looking to get their foot on the property ladder", said Karen Barrett, chief executive of unbiased.co.uk

"Especially as they've been given a helping hand by those lenders who've now re-introduced competitive mortgage rates on high loan-to-value products. This is a positive move, which suggests lenders now have a renewed appetite to compete at the bottom end of the market, after first time buyers were all but shut out by banks almost two years ago.

"Hopefully we may see more lenders follow these footsteps, in which case 2010 could turn out to be the year of the first time buyer."

Advice for remortgaging was also highly sought after, accounting for 32 per cent of all requests. Just over one in five (21 per cent) searches was made by consumers looking for residential property advice.

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