The number of first-time buyers entering the market has continued to creep up as buyers take advantage of parental help and near-record low mortgage rates.

Figures released today by banking trade body UK Finance show there were 29,100 new first-time buyer mortgages completed in September 2019, some 1.6 per cent more than in the same month last year.

In fact, there were more first-time buyers taking their first steps onto the housing ladder this month than there were existing homeowners moving.

While the number of home movers was also up year-on-year, with 1.8 per cent more than in the same month a year earlier, overall there were 50 fewer movers than first-time buyers in September. 1

The number of first-time buyers outstripped homeowners moving house in September

Mark Harris, chief executive of mortgage broker SPF Private Clients, said:’Encouragingly, the number of first-time buyers continues to edge up as they take advantage of cheap mortgage rates at high loan-to-values and the continued support of the bank of mum and dad.

‘Lenders are keen to lend, particularly as they look towards their year-end, and hardly day goes by without another cutting its rates to attract business.’

Lenders have been cutting rates as the year begins to draw to a close, with five-year deals currently at some of the cheapest levels ever.

Meanwhile,5,500 new buy-to-let home purchase mortgages were completed in September 2019,marking a 3.5 per cent fall compared with the same month last year.

The figures also show growing numbers of home owners borrowing extra when it comes to remortgage.

There were some 17,740 new remortgages with additional borrowing in September, 5.9per cent more than in the previous year.

The average extra borrowing taken on per household was £50,000, UK Finance said.

There were also 19,140 new ‘pound-for-pound’ re-mortgages with no additional borrowing in September, 8 per cent more than in September 2018.

Shaun Church, director at mortgage broker Private Finance said: ‘The remortgage market continues to boom, as homeowners capitalise on the current price warbetween lenders.

First-time buyer numbers have dropped since last month due to seasonal moving and buying trends – however numbers are up by 1.6per cent on the same month last year

‘With mortgage rates hovering near record lows,borrowers coming up to the end of their terms should make the most of this opportunity and lock into the ultra-competitive. ‘The current rate war means there’s plenty of choice for borrowers looking to secure an affordable deal. However, cost-conscious mortgage customers should remember to look beyond the headline rate and take all fees and charges into consideration.’

Article sourced from This is Money website in an article on 19th November 2019 . Original full article can be viewed by clicking link below

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