First time buyers seeking out advice in droves - Mortgages - News - Moneyfacts


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

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 It is now over 6 months old so the content may be out of date.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 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."

Find the best mortgage rate - Compare best selling 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 Any products featured may be withdrawn by their provider or changed at any time.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

Halloween horrors that put people off a home

Halloween is just around the corner, and many people will be getting their homes ready for a night of spooky fun. However, if you’re trying to sell your home, there are some real-life horrors that could put people off…

Londoners could be saving for a century to buy

We all know how expensive property can be in London and how tricky it is to get on the ladder, but the figures could still come as a shock, with a study finding it could take more than a century for the typical Londoner to save a deposit.

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.