17 March 2010 / by Rachael Stiles
This could be the year of the first time buyer, as they have represented a consistently large proportion of mortgage enquiries since the beginning of the year, says unbiased.co.uk.
February saw first time buyers account for 42 per cent of enquiries for mortgage advisors, according to the website latest Advice Drivers report, and they accounted for a close 42 per cent in January.
Unbiased.co.uk suspects that with consistent enquiries from first time buyers and with more mortgage lenders offering higher loan to values at more competitive prices, 2010 could see first time buyer mortgages dominate the market.
Commenting on the figures, Karen Barrett, chief executive of unbiased.co.uk, said: “It is encouraging to see first-time buyers are back out in force looking to get their foot on the property ladder. Especially as they’ve been given a helping hand by those lenders who’ve now re-introduced competitive mortgage rates on high loan-to-value products.
“This is a positive move, which suggests lenders now have a renewed appetite to compete at the bottom end of the market, after first-time buyers were all but shut out by banks almost two years ago.”
Ms Barnett hopes to see more lenders follow suit and encourage more potential homeowners into the market by offering competitive first time buyer mortgage opportunities.
The data also reveals that 32 per cent of consumers are searching for whole of market mortgage advisers who specialise in remortgages, and that 21 per cent of those looking for a mortgage advisor were interested in residential property advice.
Ms Barnett added: “It is essential that first-time buyers and also those looking to remortgage seek advice to ensure they are making the best decisions for their individual circumstances. Only a whole of market mortgage adviser can give advice on products from across the market, which suit the individual’s needs and financial position.”
Other top requests for mortgage advice in February included residential home loans (21 per cent), buy to let mortgages (14 per cent), equity release (seven per cent), and high loan to value mortgages (six per cent).
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