New research from UK Finance reveals the number of first-time buyers hit a 12 year high in 2018 of 370,000, up 1.9% from 363,000 in 2017.
The record number of first-time buyer mortgages is partly reflective of the increasing range of competitive mortgages available on the market. Competition amongst banks continues to help keep interest rates down, making mortgages affordable for an increasing number of prospective first-time buyers.
More banks and mortgage providers are also offering more products specifically tailored to first-time buyers, that make use of the ‘Bank of Mum and Dad’. In February, Lloyds introduced the ‘Lend a Hand’ mortgage where buyers can use their parents’ savings in place of a deposit.
Many buyers are also making use of Government schemes designed to help first time buyers.
The ‘Help to Buy’ ISA, for example, is available to help boost the savings of first-time buyers. This major tax break allows aspiring homeowners to save towards the purchase of their first home by providing a top up of £50 for every £200 invested into the ISA.
Stephen Ludlow, Chairman at Ludlowthompson, says: “The record high number of first-time buyers reflects the current good conditions for those looking to get on the property ladder.”
“Low borrowing costs and Government help with deposits are keeping flat and house purchases in London well in reach of an increasing number of millennials.”
“London remains the ideal location to live and work, and property in the capital remains an excellent long-term store of value.”