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Confidence started returning to first-time buyers at the beginning of this year, according to brokerage John Charcol.
The index reveals a sharp increase in the proportion of purchases made by first-time buyers in the first four months of this year, with that proportion being 3.5 times higher than in the previous four months.
Ray Boulger, senior technical manager of John Charcol, said: “The return of significantly more first-time buyers in to the market this year, despite the lack of high loan-to-value mortgages, is one of the best indicators of confidence we’ve got at the moment.
“A surprising number of first-time buyers have managed to find deposits of at least 25% in order to access a wider choice of mortgages and get a cheaper deal. Many branches of The Bank of Mum and Dad have proved more robust than many of our high street banks, haven’t needed a Government bail-out and recognise that providing their son or daughter with a sizable deposit is often a good way of utilising their savings.
“Banks and building societies bemoan their ability to attract savings in the current low interest rate environment but their mortgage rates give them the best gross margins they have experienced for many a long year. With parents providing bigger than ever deposits for their first-time buyer children, some families have found a way of cutting out part of the middle man’s turn.”
The proportion of all applications for fixed-rate mortgages continued to climb in the last month, from 80.9% in March to 82% of all business written by John Charcol in April. This number is over 70% higher than the proportion of fixed-rate applications in January, when it stood at 47.8%.
Rob Davies explains how best to use the Internet to get a good mortgage deal
The March/April 2010 issue of Your Mortgage is on sale now. In it we look at the pros and cons of Mortgage Payment Protection Insurance; we list the 10 golden rules that every first-time buyer should know; weigh up the relative merits of fixed rates and tracker mortgages and explain how equity release schemes can help older homeowners. Get your copy for the latest news, information and help.
The Your Mortgage Awards aim to reward those lenders that have excelled in providing innovative and competitive products. Widely regarded as the UK's definitive consumer mortgage awards, the Your Mortgage Awards have now been running for 20 years.





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