MANCHESTER, England, August 8, 2012 /PRNewswire/ --
The number of first-time buyers grew substantially in early 2012 compared to the previous year, according to the Council of Mortgage Lenders.
Mortgage statistics are monitored in terms of both volume and value, with both up by over a fifth in January compared to the same period in 2011.
The total lending for first-time buyers grew by 23%, with the number of loans growing comparably at 22%. The figures were significantly down compared to December, but a combination of cold weather and post-Christmas financial constraints mean this seasonality is perfectly normal.
The increase in first-time buyers means brokers can be missing out on sales opportunities by shying away from selling micro mortgages.
The Council of Mortgage Lenders is made up of banks, building societies and other reputable financial institutions that are responsible for around 95% of the mortgage lending activity in the UK. They reported the figures retrospectively along with the worrying news that although first-time buyers are on the increase, 'first-time sellers' are on the decrease, leading to a crowded property market.
Fewer people are willing to part with their home once they secure their first property, meaning that the few affordable flats, apartments and houses are in high demand.
Many homeowners take this stand despite being stuck in unsuitable housing - a large percentage of first-time buyers go on to have children within the first few years and struggle for space, but rather than moving they choose the security of their first home rather than the added stress and upheaval of moving to a more suitable home.
Additionally, these 'second-steppers' typically bought houses in and around 2007 and due to the changes in the market, many find themselves in negative equity. This makes them unwilling and unable to move on, even when it would normally be the next logical step.
Visit the website at http://www.cheshiremortgage.co.uk.
This article was written by Nicholas Jones, National Sales Manager, Cheshire Mortgage Corporation.
Cheshire Mortgage Corporation
SOURCE Cheshire Mortgage Corporation