Rates of first-time buyer mortgage products rise by 0.23%
The number of first-time buyer mortgage products has fallen by a quarter since the end of Q1 2023, the latest research from estate and lettings agent Barrows and Forrester has revealed.
The research, which covers the four mortgage categories of buy-to-let, remortgage, first-time buyer, and moving home, has shown a 25.6% reduction in the number of first-time buyer mortgage products, resulting in a rise in first-time buyer rate by 0.23%.
There are currently an estimated 412 first-time buyer products on the market, by far the lowest offering across all four categories.
Meanwhile, data analysis by comparison website Confused.com has revealed that over nine in 10, or 91.6%, of homeowners aged between 16 to 24 are living in their first home.
Thanet has seen the largest year-on-year increase in first-time buyer house prices of 8.3% since 2013, while Elmbridge recorded the greatest difference between first-time buyer property prices and overall house prices at 43.9%. First-time buyers in Greater London recorded the highest average deposit of £125,378 last year.
“Depending on what you’re trying to achieve, you’re going to face a variety of different challenges as a buyer in today’s market,” commented James Forrester (pictured), managing director at Barrows and Forrester. “For example, first-time buyers are going to be severely restricted by the small number of products available to them, which will prevent many from securing a mortgage.
“Lenders appear much more comfortable providing variety for those who already have a foot on the ladder, but even they are having to deal with cost increases and a significantly reduced selection of products.
“If the mortgage crisis deepens in the coming months, things could get even harder for buyers, but the silver lining is that, while tough, the current situation isn’t as severe as the market turmoil experienced in the 90s and more recently, 2007.”
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