Industry research carried out by Yorkshire Building Society found that first time buyers accounted for 51% of all mortgaged property purchases in 2019.
Compared with a mere 38% at the start of the 2008 financial crisis, these figures are a promising sign for the housing market.
In spite of concerns over the effect of Brexit on interest rates, 353,436 first-time buyers bought their first home with a mortgage last year. Though it is only marginally up from 2018, which saw 353,130 first-time buyers enter the market, it is still the highest level since 2007.
Strong competition has driven mortgage rates down in recent years and Government schemes, such as Stamp Duty relief, Help to Buy equity loans and Help to Buy ISAs, have certainly supported growth. Though house prices have risen considerably in comparison to salaries over the past 12 years, a rise in 95% loan-to-value mortgages has reduced the need for a higher deposit. Furthermore, many first time buyers are now opting for home loans with terms of up to 40 years, making their repayments more affordable.
Although the Help to Buy Isa was discontinued in November 2019, the Lifetime ISA is still available and offers a generous Government bonus of 25%, up to a maximum of £1,000 per year. You must be between 18 and 40 to open a Lifetime ISA and you can put in up to £4,000 each year until you’re 50.
If you are a first time buyer looking to get on to the property ladder in 2020 our revolutionary conveyancing service will help simplify the process. Whether you are looking for advice and guidance on how to enter the market, or you are ready to enlist our services, contact our team today.