Cheaper first time buyer mortgage deals are increasing home-ownership.
According to recent reports more affordable first time buyer mortgage deals are enabling more people to climb on the property ladder.
Figures show that during January and May 2013 over 50% more hopeful first timers were able to afford to purchase a home than for the same period in 2012.
What has changed? Since the beginning of the year the benefits of schemes such as Funding for Lending and Help to Buy have started to filter through to smaller deposit buyers. In the first 5 months of this year over 32,000 have managed to get themselves on the property ladder with a competitive first time buyer mortgage.
At present rates for lower deposit deals are competitive, however market warnings have been issued that this could be set to change. Swap rate increases could start to push up mortgage rates, and those usually hardest hit are borrowers on lenders variable rates and first time buyers looking for a mortgage.
During times when lenders experience increased funding costs they prefer lower risk higher deposit borrowers, and most first time buyers wanting a mortgage do not fit this category. In addition lenders increase their rates where it is easy to do so, and SVRs holders can represent a soft target as was seen throughout 2012.
If you are looking for a first time buyer mortgage, or you are an existing home-owner on an expensive SVR looking to remortgage, call Deal Direct for advice and a quote. We are an independent and impartial 'whole of market' broker who can find you the right new deal at a competitive rate.
Contact an adviser today on 0800 048 8828.
