First timer loans still easing through
Stats out of late show that first time buyers are still getting the money they need to make a start on the home-buying ladder.
First time loans rise
First time buyer borrowing stats around currently show an increase in the number of first-time buyer loans. They were up 43% to 18,100 compared to the Spring and also 22% up compared to the same period last year. The value of these loans also increased by 53% on the previous quarter’s lending figures and 28% on those this time in 2011.
Over three times salary
The Council of Mortgage Landers point out that first-time buyers are now throughout the UK taking out a homebuying loan of on average £104,000. This means they borrow on average 3.21 times their income and pay 19.6% of their income in capital and interest payments. First-time buyers are buying properties nationally valued at between £125,000 – £250,000.
Says Paul Ainsworth Lord,”I think these statistics do have a positive aspect to them and deserve to be taken note of. They are not stunning and certainly not startling – nor are they taking us back to any kind of high flying property market bonanza. But, they offer clear proof of some movement in the right direction. The market just won’t be like it was, but it IS better than its been. So let’s feel a little positive about things – and why not? ”
With the ‘market misleading’ stamp duty holiday now out of the way, Paul’s view is that the housing market does in general look to be in better health than previously thought.
On the move
Adds Paul, “Here in Darwen and all over the North West Region, first time buyers are still getting on the move and I expect them to be able to go on doing so more and moreduring the up and coming Autumn period and into next year.
So far our home sales here in Darwen, and in and around Blackburn and Bolton, where we also do good business, has been steady month on month this year. For me, this very much bears out the fact that many people – including, of course, first time buyers – are making the best of things and seem in most instances to be remaining positive. They remain keen to get on with the current situation and they deserve credit for their attitude for sure.”.