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First time buyers seeking out advice in droves

First time buyers seeking out advice in droves

Category: Mortgages

Updated: 07/07/2011
First Published: 07/07/2011

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 It is now over 6 months old so the content may be out of date.

Potential first time buyers are seeking out advice in their droves as lenders begin to return to higher loan-to-value lending.

First time buyers looking for guidance in the market accounted for 40% of all advice sought on mortgage matters in June, the highest level seen since April last year, figures from unbiased.co.uk have revealed.

The first time buyer market has returned to the spotlight in recent months.

A number of lenders have returned to the market, offering attractive packages to buyers with 10% or even 5% deposits.

This week, Housing Minister Grant Shapps encouraged more lenders to follow the lead of Lloyds TSB in offering mortgages to buyers, guaranteed by parents and other family members.

He also proposed that buyers be allowed to chip in with other mates to raise a necessary deposit, with the products being dubbed 'mates mortgages'.

The Government has also started a jointly run scheme with house builders which will allow first time buyers with a small deposit to top up their equity with a loan they can pay back when they sell their new build property.

Karen Barrett, chief executive of the website, said "figures suggest that confidence in the mortgage market is returning".

"We are seeing quite fast paced changes with a number of mortgage lenders having made their products more available by increasing the loan-to-value and offering attractive rates as the base rate remains historically low," she added.

"This has led to an increase in the demand for whole of market mortgage advice from first-time buyers.

"It's really good to see that they are looking for this type of advice to ensure they get a complete overview of all the products which are currently available to them and make the best choice according to their financial position."

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