First-time buyer numbers fall

News Category: Industry News

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Rising house prices, rising interest rates and the growing number of buy-to-let landlords purchasing property for rent all contributed towards diminishing numbers of first-time buyers, moneysupermarket.com has claimed.

Data from the price comparison website's Mortgage Map index suggests that the number of first-time buyers coming to the mortgage market has fallen by one fifth in the last six months. It said that immigration could also be prompting the rapidly diminishing proportion of first-time buyers.

The research also revealed that homeowners are increasingly turning to fixed-rate deals amid worries over the market. Approximately 48 per cent of borrowers are now on a fixed-rate mortgage deal of up to five years, compared with 39 per cent in March.

Louise Cuming, head of mortgages at the website, said: "Therate of decline is surprising and the five interest rate rises in the last 14 months means it is now more expensive for first-time buyers to get onto the housing ladder."

According to Moneyfacts.co.uk, there are now 40 per cent less products available on the mortgage market than there were three months ago.

In the buy-to-let sector, prime mortgages dwindled by 20 per cent (down 438), while sub-prime has shrunk by a staggering 72 per cent (down 991).

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