When it comes to property and wine, 2006 is renowned for being a great year – but then the financial crash of 2007/8 hit and everything changed.
Whilst we can’t comment on the credit crunch’s impact on wine, we do know that the number of first time buyer mortgages made available dwindled significantly as lenders adopted a much more cautious approach to UK property ownership.
Now, almost 16 years later, the first time buyer mortgage is getting a new lease of life following figures released by Yorkshire Building Society, which reveal how first time buyer mortgage numbers are at their highest level since the heady days of 2006.
Across Britain alone, 2021 saw 408,379 mortgaged first time buyers, up from 300,307 in 2020. That’s a hefty 26% increase. As a first time buyer mortgage broker in Guildford, the findings echo what we’ve been seeing in and around Surrey – although as mentioned in a previous article, we’ve actually processed comparatively more first time mortgages than what official figures reveal.
Interestingly, it’s not only approved first time buyer mortgage applications that are on the up. A typical first time buyer property also increased by 9% to £222,997 in the 12 months up to October. So, on the back of a strong 2021, what does 2022 hold?
Whilst the Bank of England HAS increased the base rate from 0.10% to 0.50% since the end of last year, further rises cannot be ruled out as we move further into 2022. And whilst that’s far from a certainty, should the base rate continue to rise so too will the rates of mortgage products.
Furthermore, if first time buyer property prices continue to rise at the same pace then it’s likely that this, coupled with less competitive mortgage rates, could slow down the momentum that those applying for a first time buyer mortgage are currently enjoying.
However, it’s the beginning of a New Year, we’re still seeing some of the best mortgage deals that we’ve seen in a long time and interest rates remain incredibly low. On that basis alone we’d say that regardless of what happens later on down the line, the first quarter of 2022 still represents a golden opportunity for first time buyers to get their feet firmly on the property ladder.
To speak with a Guildford first time buyer mortgage adviser contact the Complete Mortgages team on 01483 238280 or email firstname.lastname@example.org. Don’t forget, we also specialise in buy to let mortgages, self-employed mortgages and equity release mortgages, too.