First Time Buyers on the increase

Prior to the credit crunch, first-time buyer’s amounted to as much as 40% of the house-purchase market. That number had dropped dramatically in recent years, however Rightmove’s own forecast for the final quarter of 2012 reveals that 25% of those who intend to purchase in the next 12 months will be doing so for the first time. Although not back at the 40% level, this is a very positive indication indeed.  

The report also cited that many First Time Buyers are still of the understanding that need a large deposit to purchase. It is certainly the case that if you want to get the very best deals out there, you need a greater deposit – if we are honest with ourselves, this makes perfect sense. The cheapest money is offered to those home-owners who pose less risk.

However, the deals on offer for First Time Buyers are certainly good deals. In the current market (assessed 09.11.2012 – source mortgage brain) there are a selection of lenders offering 90% mortgages for 4.99% [The overall cost for comparison is 4.8% APR*]. There is also a selection of mortgages available at 95%, for example the Furness Building Society having just launched a 95% mortgage exclusively for first time buyers this week. The point is this, rarely, if ever, have I seen in my 13 years as a mortgage broker low deposit deals at such great rates. It may not seem great compared with such a low Bank of England Base, which has remained at a record low for a record number of months, but it is competitively priced borrowing nevertheless.

Not only are the rates in real terms against a historic comparison, very competitive, but there are a number of excellent schemes to help buyers too. With the NewBuy scheme available to purchasers of new build properties from some the major developers, shared ownership and the other avenues of buying.


*For illustrative purposes:

Coventry Building Society 4.99% 5 year Fixed rate at 90% LTV (loan to value) [The overall cost for comparison is APR 4.8%]. The lender charges a £250.00 booking fee, and offers free valuation. Early repayment charges apply during the fixed rate at 3% of the balanced borrowed, early redemption charges expire 31/12/2017. This mortgage could be withdrawn at any time. Subject to status and availability. Harvey Bowes may also charge a fee depending on the complexity of the advice given, this fee will always be quoted up front and will be no more than £600, normally paid on completion of the mortgage.


Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

Are you looking for advice on a mortgage? Contact Harvey Bowes mortgage broker Cardiff today on 029 2115 6918

About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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