Mixed messages for new buyers

13-Dec-2007

The Council of Mortgage Lenders (CML) has released its latest lending figures for October, showing mixed fortunes for first time buyers looking to purchase a first property.

The CML's research shows that interest repayments accounted for 20.6 per cent of a first time buyer's monthly income in October – up from 20.4 per cent in September, but there was better news elsewhere.

According to the CML, the average income to mortgage ratio fell from 3.38 to 3.36 over the same period.

In total there were 82,900 mortgage approvals made in October, up from the 80,400 seen the month before.

"Significantly, the combination of stagnating house prices and lower mortgage rates in 2008 should boost affordability for the first time since 2001," said David Stubbs, senior economist at the Royal Institution of Chartered Surveyors.

"Many would-be first time buyers, who will have been unable to access the housing market in recent years, will see this as an opportunity to get their first step on the ladder," Mr Stubbs added.

Rics itself has published new data showing that while new buyer enquiries fell again in November, the drop was at a lower rate than that seen in October.

"The market was busier towards the end of the month and we are beginning to see confident buyers who want to commit," commented John Frost from the Frost Partnership in Buckinghamshire.

Last week it was reported that buyers are foregoing holidays and more expensive food in an effort to save for a deposit for a first time buyer mortgage.

Christmas rush not putting off buyers.


Average house prices 'down by £2,000' in November

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