First time buyers’ mortgage approvals increase

Chartered surveyors are reporting a sharp rise in mortgage approvals, suggesting that first-time buyers are finding it easier to get on the house price ladder once again.

Research from chartered surveyors eSurv showed that approvals rose by 4.3pc in March compared with February, while those with smaller deposits are finding it easier to take out a home loan.

The year-on-year comparison is more positive too, with decline slowing to 0.6 per cent compared to March 2010, the slowest year on year decline since it began falling in May 2010.

According to the survey, the volume of high loan to value mortgages has increased. The number of people buying with a deposit of 10 to 15 per cent grew a third faster than average. It is generally first-time buyers, with smaller deposits, who take out this type of loan.

Cheaper properties were also popular, with those up to £125,000 accounting for a third of all mortgage approvals. According to the Council of Mortgage Lenders (CML), the average first-time buyer mortgage is £100,000, while the average mortgage for a home mover is £130,000.

Richard Sexton, business development director of eSurv, said that more first-time buyers were jumping in thanks to record rents, and more high loan-to-value products on the market.

Source: The Telegraph

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