Increase in First Time Buyers Stepping onto the Property Ladder.

Increase in First Time Buyers Stepping onto the Property Ladder.

Conditions are carrying on improving with regards to the property market. This has seen an increase in first time buyers due to more available mortgages and government property schemes such as Help to Buy.

Saving for a substantial deposit still remains a hurdle to getting on the property ladder and with house prices continuing to rise it is becoming even more of a challenge for the majority of buyers.

 

Higher loan to value mortgages are increasing also so there are plenty of options for buyers with smaller deposits. Some of the present 90% loan to value mortgages are very competitive with interest rates as low as 3.54% (Chelsea building society). Currently the two-year fixed rate is a popular choice with many borrowers thinking they will be able to remortgage onto another fixed deal at the end before interest rates rise.  Howeverthis can be a gamble as no one can predict when rates will rise. Although there are currently some other good five-year fixed rates available for example Nottingham building society offers a five-year fixed rate at 4.39% for 90% LTV with a £299 fee.

Mortgages with a 95% Loan to value still remain minimal and rates on these can be a lot higher than mortgage with a lower LTV. Although this may not be a bad thing as borrowing a high LTV when interest rates are so low may not be a wise idea.

Lack of housing still remains an issue and there is a shortage of new homes being built in contrast with our ever expanding population.