The number of first-time buyers who have completed mortgages through intermediaries has reached a three year high according to new statistics from the Intermediary Mortgage Lenders Association (IMLA).
Despite Brexit concerns that may affect the future of the UK property market, the latest Mortgage Market Tracker from the IMLA shows that completed mortgages for first-time buyers that were handled by mortgage intermediaries increased by over 8%.
This is up from 81% from the third quarter of 2018.
In 2016, around only 69% of mortgages for first-time buyers managed to reach completion. With a 20% increase in the span of just under three years, it’s becoming clear that first-time buyers are quickly becoming a growing sector in the UK property market. Read more on our first-time buyers’ prediction.
“It is encouraging to see that when an intermediary does apply for a loan on their client’s behalf, they are being accepted and completed at growing rates. Mortgages going from offers to completions are at more than a three year highs as intermediaries and lenders continue to find solutions for clients,” stated the IMLA executive director, Kate Davies.
As the IMLA predicts that mortgage intermediaries will continue to account for a growing share in the mortgage market, it’s becoming clear that property developers should be looking more at the first-time buyers market.
By focusing on property development for this market, you may benefit from this current, growing trend.
Although property prices for first-time buyer homes have risen by over 21% since 2008, first-time buyers made up just over 51% of the UK property market for the first half of 2018.
Over 175,500 homes were purchased in the first six months of 2018, an incredible increase of double from the 2009s low of 72,000.
Developing homes for first-time buyers don’t necessarily mean you have to sell them at a lower cost. The average first-time buyer deposit in London rose to £114,000 compared to an initial deposit of £38,000 in 2008.
With government schemes available to first-time buyers, there has been encouraging signs for this particular property market.
Russel Galley, managing director at Halifax, points out that government schemes such as Help to Buy as well as a competitive market for mortgage rates are key contributing factors for this growing trend.
“Despite these increases, and the concern many young people feel about home ownership, the number of first-time buyers continues to grow and is nearly back to the peak seen of 2006,” remarks Russell Galley.
Despite the growing trend, it’s incredibly important to begin construction on property development as quickly as possible. At Hunter Finance, we offer short-term funding that makes development finance quick and easy.
We offer 100% of development finance for building costs and up to 60% of the land purchase site. Apply for property finance today.
Interested in reading more about the UK property market and our predictions for 2019? Hunter Finance is here to provide you with all the information you need.