With first-time buyers reaching their highest level since 2007, you might want to start your search now.
First-time buyers make up over half of all sales. According to UK Finance, published August 20, 2019, 9,960 new first-time buyers mortgages completed in London in the second quarter of 2019. Up by 1.2% from the same quarter last year, and twice as high as the 191,040 people who bought a first home in 2008. These are figures that haven’t been seen since just prior to the economic crash in 2018.
This new found stability in first-time buyers has seen them account for more than half of all home purchases made with a mortgage.
In general, the confidence in home buyers is returning. According to Zoopla these are the figures in mortgage and loan approvals:
- The housing market enjoyed a late autumn bounce with mortgage approvals for house purchase rising by 7% in November
- A total of 43,589 mortgages were approved by the high street banks for people moving home during the month
- There was also an increase in the number of loans approved for people remortgaging, with these rising by 12.7% year-on-year to 34,653 – the second highest level recorded in 2019
Is it true that a first-time buyer can borrow upto 95% and reduce the size of the deposit?
Not only has there been an increase in lenders offering mortgages at 95% of a property’s value but there has also been an increase in the amount of mortgages available with 40 year terms. In turn, increasing the affordability of monthly repayments.
Can I still benefit from ‘Help to Buy’ schemes?
Government incentives for first-time buyers such as Help to Buy equity loan scheme and Help to Buy ISAs, as well as stamp duty relief on the first £300,000 of a property’s price have encouraged a shy inexperienced market to take the plunge with more affordable options.
Despite its obvious attractions as a beautiful cosmopolitan city with infinite job opportunities, 12% bought one in London, significantly higher than in other regions of the country, despite the higher property values. Again, according to Zoopla, first-time buyers accounted for 60% of all house purchases with a mortgage in London.
Thisismoney.co.uk published in October 2019, “First-time buyers were handed some 35,010 mortgages in August, an extra 250, or 0.7 per more, than in August last year. That is the highest monthly total since August 2007, when some 35,070 new first-time buyer mortgages were issued, data by UK Finance shows”.
There is a clear stability returning to the capital, a stability that has never wavered as much as other parts of the country. For steady returns on your investment the London is looking good once again – close to the years prior to the economic crash in 2018.
At Eureka Property, we have a love affair with North London and its many communities. There are still investments to be made in some of the more overlooked neighbourhoods, and we are here to share that knowledge and experience with you.