Free Valuation

Quick Search

Refine News

First Time Buyer Numbers at Highest Since 2007

First Time Buyer Numbers at Highest Since 2007

Recent years have proved difficult for mortgage borrowers but it has been especially difficult for first time buyers. The credit crisis saw a rapid tightening in mortgage availability and lending criteria, making it all the harder for those trying to get a foothold on the property ladder.

However Halifax has released figures that show a marked improvement in the number of first time buyers in 2014. There was an increase of 22% in first time buyer numbers last year which means an increase of 50% over the last 2 years.

So what has led to the turnaround in fortune of first time buyers?

Undoubtedly one of the major challenges for first time buyers has been the need to build a large deposit. The options for those with only a small deposit, which typifies the first time buyer profile, were extremely limited and carried much higher rates.

As the market has improved the options for those with small deposits have improved. Although rates are still higher they have been coming down. The introduction of the Help to buy guarantee scheme boosted the number of mortgage deals for those with as little as 5% to put down.

That’s evident in the Halifax figures as the average first time buyer deposit fell from 20% of the purchase price in 2013 to 17% in 2014, although it remains significantly higher than before the credit crisis in 2007 when the average deposit represented 10% of the purchase price.

The mortgage market has only become more competitive in recent months and the fixed rates on offer have hit new record lows. That will continue to help first time buyers from an affordability perspective and boost their confidence.

The recent stamp duty reforms will help many first time buyers as well with many benefiting from a reduction in their stamp duty bill. Those savings could help bolster deposit funds which could help accelerate their chance of buying.

Our Independent fee-free mortgage advice service will help advise you on the best lending product and guide you all the way through to securing your ideal mortgage.

Please call Andrew Grant’s Mortgage Service on:

From a Landline: 0800 923 2043

From a Mobile:
0330 303 1118


The Andrew Grant Mortgage Service is provided by London & Country Mortgages Ltd. Beazer House, Lower Bristol Road, Bath, BA2 3BA who are authorised and regulated by the Financial Conduct Authority. Their FCA number is 143002. The FCA does not regulate most buy to let mortgage.. Calls may be recorded for monitoring and/or training purposes

Share this article

Other News Items

  • Everything you need to know about becoming a tenant

  • The Nation's Most Active Markets

  • Online auction - the modern way to buy and sell property

This site uses features that require cookies to be stored on your machine. To enable these features, click 'OK'

For more information on cookies and the features that use them please click here.