First-time buyers resurgent says survey

Posted: 08 Jan 2007 10:50:32 GMT

The number of first-time buyers entering the housing market grew 11 per cent in December, research for Mortgages Direct has claimed

The number of first-time buyers entering the housing market grew 11 per cent in December, research for Mortgages Direct has claimed.

New homeowners made up 48 per cent of the market in the last month of the year it added, the highest level recorded since December 2005.

The broker said that the rise is due to increased maximum income multiples offered by lenders. The report follows recent claims that new buyers were at a 26-year low.

"First-time buyers have been able to take advantage of some good fixed-rate deals and the high level of loans may also be a reflection of the increased generosity of lenders offering income multiples of up to five times," said Peter Gladdy of Mortgages Direct.

"However, first-time buyers should be careful not to over-stretch their finances and make sure that they are confident about being able to afford the repayments, especially when deals end."

© Houseladder Ltd