MortgagesNov 20 2015

First-time buyers help boost mortgage market

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First-time buyers help boost mortgage market

First-time buyer lending is supporting a buoyant mortgage market, with first-time buyers accounting for a fifth of investment management business in the past three months, according to an adviser index

First-time buyers accounted for a fifth (19 per cent) of IM business over the past three months – the highest level since 2001, according to Paragon Mortgages’ latest Financial Adviser’s Confidence Tracking Index.

Each intermediary is dealing with an average 23.3 mortgage applications a month. Despite an increase in the third quarter of 2015, levels of remortgaging remain on a long-term downward trend, having dropped from more than 60 per cent of the market in 2008 to 33 per cent.

John Heron, director of mortgages at Paragon, said: “The level of mortgages that intermediaries dealt with during Q3 is indicative of a stronger market with the improvement being driven by a strong recovery in first-time buyer numbers.”

Adviser view

Ian Gwinnell, IFA and director at Stafford-based All Counties Financial, said: “Low interest rates since the slump mean more people have been able to buy properties and this has allowed parents of applicants to pay off large amounts of their mortgage. People have saved and moved onto other properties. It is great news for everyone.”