The rate of mortgage applications resulting in completions has risen to 69% in Q1 2017, up from less than half (48%) a year earlier.
This is welcome news to first-time buyers who fear that getting a foothold on the property ladder would become increasingly difficult for years to come. Research suggests that intense competition between lenders has forced them into making it easier for borrowers to access loans.
The figures published by Intermediary Mortgage Lenders Association (IMLA) looked at mortgage applicants’ interactions with brokers from the first point of contact to completion of a loan. It found that 84% of applications by first-time buyers resulted in a mortgage offer, up from 70% in the first three months of 2016.
Peter Williams, IMLA executive director, said: “First-time buyers’ struggles have been highly publicised, with affordability stretched by rising house prices and modest income growth. However, rising levels of mortgage inquiries, applications and completions shows that a significant number of first-time buyers are still both willing and able to get a foot on the property ladder.”
“Low mortgage rates have contributed to this improving outlook for first-time mortgage borrowers.”
Separate lending figures, released by the Council of Mortgage Lenders (CML), suggest the first time buyer market is in improving health, showing that first time buyers borrowed £12.3 billion in the first quarter of 2017, up 10% from the first quarter of 2016.
Overall there is an improving picture for residential buyers who are taking their first steps in the road to purchasing their own home. At Regency Residential, we understand that finding your perfect home can be a difficult process and we are here to help. We have an expansive choice of properties, any of which could be just perfect for you. Click here to find your new home.