According to a recent story in The Guardian, the number of first-time buyers fell by 22 per cent between the months of January and August – a clear sign that for those trying to get their feet on the property ladder, getting a mortgage in the UK has been harder during the first half of 2023.
As a Maidenhead mortgage broker that specialises in first-time buyer mortgages, we’ve seen a similar decline – albeit less than 22 per cent – over recent months. The rising cost of living, increasing mortgage rates and the tightening up of lending criteria has all played a part.
So, what lies in store for the remainder of 2023?
A brighter outlook
Despite the autumnal nights drawing in and winter being just around the corner, our team of Berkshire mortgage advisers believe that things are actually going to get brighter for those applying for a first-time mortgage as we near the end of the year – and here’s why.
As we covered in our last article, the Bank of England recently took the decision to hold the base rate at 5.25 per cent in a move that signals how economic pressures are beginning to ease, and that the cost of borrowing could soon begin to fall.
Fixed rate mortgage rates have already fallen considerably since the start of their rise last October, which means that first time buyer mortgage deals are becoming more accessible.
A better ratio
The Guardian article also refers to strong income growth, which has pushed the first-time buyer income ratio from 5.8 in June 2022 to 5.1 making property prices for first time buyers their most affordable since June 2020.
So, given the favourable affordability ratio, falling fixed rate mortgage rates and a larger volume of properties coming on the market, we feel that the next six months could quite easily make up for the fall in first time buyer activity seen over the last eight months.
Of course, if you are a first-time buyer looking to enter the world of homeownership, then there are still a few hurdles to jump in order to get a first-time buyer mortgage. However, as a first-time buyer mortgage broker in Maidenhead, we are well-placed to help you clear them.
Looking to apply for a first-time buyer mortgage? Get first-time buyer mortgage advice from our team of Maidenhead mortgage advisers by calling 01628 560820 or emailing enquiries@altonmortgages.co.uk.