Lending to first time buyers at 5yr high

New figures released by the Council of Mortgage Lenders suggests that lending to first time buyers in January and February reached a 5 year high.

There was a 3 per cent increase in the number of new mortgages agreed to first time buyers in February, making it the busiest first 2 months for new property purchasers since 2008. The increase in activity at the bottom rung of the property ladder has not however resulted in a sizeable increase in house sale transactions, as new mortgages to home movers have actually dropped. First time buyers make up 43 per cent of all borrowers taking out a mortgage to fund a house purchase - loans to home movers having fallen by 3.6% compared to January.

The increase in first time buyer activity should, if maintained, prove sooner or later to be a much needed boost to the Northern Ireland property market as a whole, as new purchasers are vital to get 'property purchase chains' started up, where home movers are able to enter the market as a result of getting their own property agreed for sale. Several months of consistent activity involving new purchasers should begin to show some impact on the number of home movers purchasing property in Northern Ireland, and the rest of the UK.

If you are buying your first property in Northern Ireland, or perhaps selling or remortgaging your existing home, contact one of the property solicitors at Wilson Nesbitt in Belfast for information on the conveyancing process by calling 0800 840 9290.