The telephone and online mortgage specialist has recorded a 16 per cent rise in applications from first time buyers since the beginning of the year, broadly in line with recent data from the National Association of Estate Agents*.
“First time buyers keep the cogs of the housing market turning, so it is good news to see more and more of them coming to the market – especially given the general levels of uncertainty regarding the direction of house prices,” said MMD managing director Paul Hearnden.
“Our 16 per cent rise suggests there is more buyer confidence out there than we have seen in a while, and along with rising levels of re-mortgage business, we put this down to the affordability factor and a growing belief that interest rates will not rise significantly over the coming year.
“The mortgage market is exceptionally competitive as we know, and we are now seeing major High Street lenders such as Abbey and Halifax get their acts together to offer some very good deals. In fact many products on the market are likely to make the lenders short term losses, they are so keenly priced,” added Hearnden.
Examples of exceptionally competitive rates currently on offer to first timers include Portman Building Society’s 4.48 per cent two year discount, Stroud and Swindon Building Society’s 4.65 per cent base rate tracker, and Alliance & Leicester’s two year, fix at 4.86 per cent.
