Steep fall in the house prices is luring the first-time property buyers. A leading property website stated that people who are buying first homes are accountable for 40 per cent of all the mortgage applications as compared to the last October figures which were less than 10 per cent.
In fact several people who are moving homes or remortgaging have also applied along with the first time buyers. The fall in property prices has tempted the first time buyers to enter the property market. However, a lot of savings still needs to be done by the first home buyers as the deposit price is rather significant.
As of now there are only three mortgage lenders who are offering home loans to people. 95 per cent of the property value can be borrowed with charging rates of almost 7 per cent. In one case an application was charged a fee of £2,499. Francis Ghiloni, the director of marketing and business development at mform.co.uk, stated that the decreasing house prices have boosted the first-time buyers, which is hwy they are returning back to the market.
Though last October there were no signs of buyers however it is only now that the numbers of applications have increased.
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