Lowest Mortgage Rates for 2 Years Fuel First-Time Buyer Activity!

- Wed 30 Oct 2024

Increased competition between mortgage lenders over the last year has led to mortgage rates hitting a 2-year low. The lower rates have had a direct impact on first time buyers, who have this year now become the largest demographic of homebuyers with 36% of all buyers doing so for the first time.

First time buyers have not only ben attracted by the lower rates of mortgage products, they will generally have experienced an increase in wages over the last two years, and for those not living at home, they will have seen a rise in rent. The average mortgage repayments for a typical UK first-time buyer home are 17% cheaper than renting, compared to a difference of just 2% a year ago, when mortgage rates were higher.

Darren Ellis, Sales Director at Bradleys Estate Agents, commented “We’ve seen a definite increase in enquiries and purchases from first time buyers this year and it is easy to see why; rents have grown astronomically over the last 2 years, stamp duty incentives currently will save more money and when we compare the hundreds of mortgage products our mortgage experts have access to, it is clear to see mortgage repayments become very attractive versus rent!”

The first-time buyer group at 36% is followed by existing homeowners with a mortgage (31%) comprising of people upsizing, downsizing and relocating. Cash buyers then account for 27% of purchases, which includes homeowners who have paid their mortgage off and some investors using cash funds. Landlords using a buy-to-let mortgage then will total 7%, which has dropped off following increased mortgages rates for these specialist mortgages.

If you wish to investigate your mortgage options you can contact Bradleys Financial Management regarding mortgages, remortgages or equity release by calling 01395 222391 or you can find out more by visiting the website here.

Lowest Mortgage Rates for 2 Years Fuel First-Time Buyer Activity!

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