“First time buyers continue to make most headway in 2019 housing market” – Private Finance comments on UK Finance Mortgage Lending Trends
Private Finance comments on UK Finance Mortgage Lending Trends
Chris Sykes, Mortgage Consultant at Private Finance comments:
“First-time buyers are continuing to make the most headway in 2019’s housing market. For the third consecutive month, mortgage approvals among first-time buyers have outperformed the number of home mover approvals, as prospective buyers are capitalising on favourable conditions.
“Higher loan-to-values and loan-to-income multiples are helping to nudge homeownership closer to reality for millions of first-time buyers, enabling them to borrower larger sums while still satisfying strict lending criteria. What’s most encouraging to see is that despite this increase in lending, the financial commitment of a mortgage continues to remain steady thanks to near record low interest rates. Mortgage payments account for less than a fifth (17.2%) of first-time buyers’ monthly income, exactly in line with the same point last year.
“Competition in the mortgage market remains healthy, with banks eager to support this next generation of homeowners. First-time buyers can benefit from shopping around to secure the most competitive product. While there may be a tempting array of cashback offers and product deals intended to lure in customers, it’s important to consider the total cost of a product over the length of a term. Speaking to an independent mortgage broker can help borrowers look beyond the headline rate or cashback deal, to work out if it truly is the best product for them.”
Kindly shared by Private Finance