With the average age of a first time buyer now 37 years old, a number of people are currently renting or living at home with their parents.
However, there have been real positive movements in this area of the market, says Peter Edwards, of Edwards Mortgage Solutions.
He said: “Recent figures from the Council of Mortgage Lenders have shown that the number of first time buyers purchasing a new home, is the highest it has been for five years. In fact, 42 per cent of all the mortgages in the last quarter of 2012 were for first time buyers. There have been a number of initiatives from both lenders and the government to help people get their foot on the property ladder, so now might be the right time to start looking for a mortgage. The availability of high loan-to-value products has recently increased with some lenders offering up to 95 per cent of the property value, meaning you need a much lower deposit. The new government Help to Buy scheme was announced in this year’s budget. The scheme has two parts, the first which was launched shortly after the budget is designed to help buyers purchase a home with only a 5 per cent deposit and provides either an interest free loan for five years of 20 per cent deposit of the property value. This means the borrower can apply for a 75 per cent loan to value (LTV) mortgage and will own 100 per cent of their property.”
For more information telephone Peter Edwards at Edward Knight on (01788) 543222 or 07971 522612 or visit at Edward Knight, 14 Regent Street, Rugby.