Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from email@example.com. Be Scamsmart.
Rising house prices don't seem to have deterred first-time buyers, as UK Finance's latest figures reveal that 2017 saw the highest number of first-time buyers since 2006, with 365,000 people taking that first step onto the property ladder. This marks an impressive annual increase of 7.4%.
Data from December shows that the last month of the year did see a slight dip in activity, with 30,800 new loans marking a decrease not just from the previous month, but also the previous year. What did see an increase – rather unfortunately but expected given the continued increase in house prices – was the median value of loans, with first-time buyers borrowing £142,200 to buy that first home. In contrast, home movers borrowed £180,999 and the average house price stood at £226,756, with the latter up by 0.4% month-on-month according to the Government's House Price Index.
The average loan-to-value among first-time buyers, meanwhile, stood at 81.4%, suggesting that they are looking beyond first-time buyer mortgages, which offer deals for those with just a 5% deposit. If you can afford to get together a bigger deposit, you are likely to find that you can get a better mortgage deal.
First-time buyers weren't the only ones to slow down in December, as home mover numbers also decreased. Indeed, only remortgages saw an increase, reflecting the usual slowdown in house purchases that occurs at the end of the year. It's expected that January's numbers, when they are released next month, will see an increase again, with a new year often being a great time for people to move or just remortgage to a better deal.
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 Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.