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Lockdown boosted purchasing power of some first-time buyers

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The ability to save money combined with potentially lower property prices has benefitted those who can access a mortgage
Lockdown boosted purchasing power of some first-time buyers

Some first-time buyers have been indirectly helped by the lockdown, as they been able to save their deposit faster than planned, said The Nottingham.

The building society found that 23% of those planning to buy their first property have been able to save more during the lockdown.

One in five should be able to buy sooner because mortgage rates have fallen during the crisis, partly due to the Bank of England base rate dropping to 0.1% in March, its lowest rate ever.

Of these people, 36% think lower mortgage rates could help them buy their first home six months earlier than they had originally planned, and 23% think it could speed up the process by over a year.

Buying opportunity

Over a third of first-time buyers (35%) believe falling property prices caused by the coronavirus will mean they will be able to buy sooner than planned.

One in five (21%) expect the current situation to speed up the process by up to 12 months, and a further 14% by over a year.

Ben Osgood, senior mortgage manager at The Nottingham, said: “Falling interest rates and property prices could mean that many people saving to get on to the property ladder could do this sooner than they originally thought possible.

“We also recognise that in the current environment, with finances impacted and some products have stricter criteria or being withdrawn, it could be harder to secure a mortgage. This is why first-time buyers and those looking to remortgage should consider a whole-of-market broker service to find the mortgage that’s right for them.”

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