First time buyers treble in 2009
First time buyers are taking advantage of plummeting house prices, according to figures released this week by mortgage experts John Charcol.
A fifth of mortgage applications during the first four months of 2009 came from first time buyers – an increase of 350% compared to the final four months of 2008.
A significant proportion of these first time buyers put down a deposit of at least 25%.
Ray Boulger, John Charcol spokesperson, said: “Many branches of the bank of mum and dad have proved more robust than many of our high street banks, they haven’t needed a government bail-out and recognise that providing their son or daughter with a sizeable deposit is often a good way of utilising their savings.”
He added that the statistics indicate confidence is returning to the housing market.
The high number of first time buyers is “one of the best indicators of confidence we’ve got”, Boulger said.
The John Charcol Index also revealed that during April eight out of ten (82%) homeowners, including first time buyers, opted for fixed-rate mortgages, protecting themselves for when the Bank of England’s base rate increases above 0.5%.