Last updated on August 18th, 2015 at 02:25 pm

According to the CML’s figures, the increase in first time buyer mortgages accelerated in the last quarter of 2012, (at around 60,500 loans, worth £7.6 billion) which coincides with the government’s introduction of the Funding for Lending scheme in August last year – a scheme which made funds available to banks and building societies.  In this quarter, loans to first time buyers were 14% higher than in the same period in 2011, making it the busiest quarter for first time buyers since the last quarter of 2009 when buyers were spurred on prior to the end of the stamp duty holiday the following year.  First time buyers accounted for around 42% of mortgage borrowers in this period.

In the same quarter, whilst the average loan to value ratio remained at 80%, there was an increase in the number of people taking out loans of 95% of the value of the property, from 1 in 100 in 2011 to 1 in 40 in 2012 and around 1 in 5 borrowers took 90% mortgages. Typically, first time buyers in the UK borrowed around 3.26% of their earnings, which related to around 20% of their income.

When it comes to property value, around 47% of first time buyers bought properties valued between £125,000 and £250,000 last year, around 40% bought properties valued at less than £125,000 and only around 2% bought properties valued higher than £500,000.

For further information on any issues relating to first time purchases please read our web pages.

We offer a complete and cost effective service, which is quick and efficient.  Get an estimate here.