First-time buyer activity surges amidst housing market slowdown

Although the housing market has experienced a decline in prices, first-time buyer activity witnessed a significant increase at the beginning of 2023.

First Direct bank reported an 18 per cent surge in first-time mortgage applications compared to December of the previous year, marking the largest increase since September last year.

Data analysis revealed that the number of first-time buyer applications rose from 17,704 in December to 20,845 in January.

The value of applications in January amounted to approximately £4 billion, up from £3.5 billion the previous month, representing a 17 per cent increase – with a slight dip in the average loan value month-on-month.

Nevertheless, the first-time buyer market experienced a year-on-year decline compared to January 2022, when application volumes reached 31,308 with a total value of £6.4 billion.

As mortgage rates increase, first-time buyers must consider various factors when purchasing property, such as deposit size, mortgage rates, and eligibility.

The government supports several savings schemes to assist first-time buyers, including the Lifetime ISA and the Help to Buy ISA, which offer a 25 per cent bonus on savings towards a deposit.

After making an offer, it is crucial to budget for additional fees and expenses. Some examples of extra costs to consider include:

Our dedicated conveyancing department is registered with many major lenders, allowing us to represent your building society or bank in loan and mortgage matters, saving you time and money.

We offer experience, local knowledge, and a friendly, approachable demeanor, aiming to make your move as stress-free and straightforward as possible. We will inform you of the expected costs and promptly update you if anything changes.

For more information on our residential conveyancing services, please contact us.

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