Rise in first-time buyer application success
Over three quarters (78%) of first-time buyers who applied for a mortgage via an adviser in the first three months of the year were accepted, a big leap from 48% in Q1 2016, according to the latest Mortgage Market Tracker from the Intermediary Mortgage Lenders Association (IMLA),
And it is not just the percentage of applications, but the actual number of first-time buyers getting onto the housing ladder which is growing. Data released by UK Finance revealed that first-time buyer numbers reached a ten-year high of 366,000 in 2017, with lending to this group continuing to increase year-on-year throughout the first three months of 2018.
IMLA said the increase has been driven by a range of factors including cash inheritances, the Bank of Mum and Dad helping to supplement deposits and government schemes such as Help to Buy.
Kate Davies, executive director of IMLA, said:
“First-time buyers’ struggles have been highly publicised, with affordability stretched by house price inflation and modest income growth. Yet rising levels of mortgage enquiries, applications and completions shows that first-time buyers remain interested, able and willing to get a foot on the property ladder, with this customer group performing better than any other in the mortgage market, both in the short-term and on an annual basis.
“As well as competitively priced and widely-available deals, many first-time buyers owe their success to initiatives such as the Help to Buy scheme, LISAs and stamp duty relief.”