Mortgage News
First time buyer applications rising: Mortgageforce
First time buyers made up 20% of mortgage applications at Mortgageforce in July compared to 9% in June in a sign that confidence has returned to the housing market.
Purchasers of all types have also increased this month, accounting for 41% of transactions at Mortgageforce in July compared to 23% in June.
Katie Tucker, technical manager at Mortgageforce, said the Halifax and Nationwide house price figures have reinforced confidence in the housing market.
She added: “Stable house prices and the availability of higher loan to value mortgages support each other more than you might think: we all know that more 90% mortgages means more buyers can get on the ladder, but it works both ways, property values stabilising means lenders can offer higher loan-to-values without as much risk, so without needing as much deposit. We expect to see even more 85% – 95% deals out there soon.”
Tucker commented that half of purchase transactions were on 85% and 90% loan to value deals.
She added: “This is high against trend and undoubtedly a result of pent up demand.”
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