MenuSearch

First time buyers

January 9th 2015
By: Jon
First time buyers

The latest figures from the Halifax have shown that during 2014, the number of first time buyers rose to its highest level in 7 years.  The estimated figures are that 326,000 people bought their first home during the year which was an increase of 22% compared to the previous year.

The figures are very encouraging and the highest total since 2007. Government schemes like Help to Buy which requires a small deposit, combined with low mortgage rates have made getting onto the property ladder and buying properties more accessible.

'Improving economic conditions and rising employment levels have boosted confidence among those thinking about getting on to the housing ladder for the first time,' said Craig McKinlay, Mortgages Director at the Halifax.

The average deposit dropped by 7% during the year.  Mortgage rates also fell and despite house prices rising, first time buyers still found homes affordable.  In 2013 the average deposit was £31,582 compared with £29,218 in 2014. 




First time buyers in 2014 were spending an average of 32% of their disposable incomes on mortgage payments – compared to 50% in 2007.  The Halifax figures also indicate that the average deposit dropped by 7% during the year.

Help to Buy enables people to put down a deposit for 5% of the selling price.  80% of Help to Buy participants are first time buyers.

To find out more about how Goodfellows can help you, please contact your local office.