Leading office and home removal company in London, Top Removals, have responded to news that mortgage lending rates are at their highest in seven years for first time buyers, with more and more new buyers entering into the market in spite of rising property prices.
The figures, released by the Council of Mortgage Lending (CML), show that June saw the most loans given to first time buyers in December of 2007, which a total of 28,600 people receiving them, up by 7.1% on May and a staggering 18.7% on June of last year.
While the amount that was borrowed in June was also at its highest for seven years – since September 2007 – with a grand total of £4.2billion lent to new buyers.
Experts also report that the average deposit was £30,966 in June for new homeowners, a rise of almost one thousand pounds on the £29,250 recorded 12 months previous.
The rising figures for first time buyers come in spite of a notable decrease in property value rate of growths in previous months, particularly in areas such as the South East.
Worryingly, findings also show that for every five home loans recorded in June, one was given to high loan-to-value borrowers. By comparison, last year the figure for such loans was one for every nine.
Analyst at Savills property group, Sophie Chick, said:
“Since the beginning of the year, we have seen both the number of first time buyers and the amount they are borrowing increase, seemingly unperturbed by MMR and rising house prices. However, haven’t yet seen any data for the period after the Bank of England introduced further measures on the 26th June. As these come into place, making it harder to borrow a high loan to income mortgage, we expect the number of first time buyers to plateau or increase.”
Top Removals often share their thoughts on removal and industry-related news. A representative for the company said that increased lending to new buyers is positively affecting the removal industry and other sectors:
“Since 2007, a lot of banks have been particularly cautious when it comes to lending, and that’s been particularly true for individuals who’re attempting to enter the property market for the first time. It’s good to see that more people are now being given the opportunity to purchase a home of their own, as it reflects the increasing health of the UK market and the confidence that many of us are feeling at the moment.
“As one of the country’s top providers of removal services, especially within the London area, we help many people to move home and we’re noticing more and more first time buyers utilising our services to help get settled into their dream homes.
“If you’re entering the housing market for the first time and you need help moving your belongings then the professional and efficient team here at Top Removals can help you.”
Top Removals is the industry’s leading company, excelling in home and office move solutions. The company is based in London and has a number of related services available. Visit their website at http://top-removals.co.uk/ for further information.