The Council of Mortgage Lenders (CML) new report found a 23% rise in first time buyers being approved for a mortgage over the period of a year.
This suggests the housing market is on the rise and CML said it was first time buyers who were “driving the mortgage market forward“.
The total number of mortgages being approved during the year ending 2013 increased 11%, while 44% of mortgages were for first time buyers.
Help For First Time Buyers
One of the major reasons the housing market has seen a recovery both overall and for first time buyers has been government back help to buy schemes.
The schemes help borrowers either by offering them a loan to reduce the cost of a deposit or protects lenders by guaranteeing a percentage of the mortgage loan.
Although the average deposit was 20% according to the report by CML, this didn’t show how many first time buyers used to help to buy scheme.
While only lenders can apply for the mortgage guarantee scheme, borrowers can apply for the help to buy: equity loan, which will help towards a deposit.
If you are a first time buyer and you’re considering getting a mortgage using the help to buy scheme you should speak to one of our mortgage advisers today.
Buy To Let Mortgages
Although the big story from the report was the rise in first time buyer mortgages, it also showed a significant rise in buy to let mortgages.
There was a 19% rise in the number of mortgages approved for new investments as people try to make the most of inflated rent prices.