Recent figures from the Mortgage Advice Bureau highlighted the changing lending landscape, as average buyer income rose, indicating that those lower down the economic ladder were struggling to get onto the property ladder at all.
First time buyer lending, though, has been steadily growing year-on-year throughout 2014. New data from Mortgage Advice Bureau reveals why: Help to Buy. The Help to Buy mortgage guarantee scheme saw average deposits fall to below £9,000 between August and September, a drop of 3 per cent. At the same time, average purchase prices fell 6 per cent over the same period. This suggests that HTB2 customers are increasingly seeking more affordable homes, making homeownership a possibility for less affluent buyers.
The data also shows that HTB2 applicants earning an average salary of £31,270 could potentially become homeowners within 9 months if they are buying with a partner or friend, or 1.4 years when buying alone.
Brian Murphy, head of lending at Mortgage Advice Bureau, says the Help to Buy mortgage guarantee scheme “continues to fill a void in the market in terms of affordability, offering a realistic way into the property market for buyers who are unable to save a large deposit”.
Source: The Movechannel