Compass Media Relations

Latest News

Improving market not without pitfalls for first-time buyers

26 Jun 2013
Improving market not without pitfalls for first-time buyers

A Penarth based Mortgage broker has backed the market to improve for first-time buyers.

John Pearson of Mortgage Search Go, a brokerage firm based in the heart of Penarth, has urged first-time buyers that the market is gaining momentum and confidence is starting to come back in to play.

Pearson, 54, believes that the mortgage market is becoming a possibility for those with minimal deposit. ‘‘You could be forgiven for thinking that it’s been impossible to obtain a mortgage unless you can lay your hands on a deposit in the region of 20-25%. The reality is now, thankfully, somewhat different.’’

The Stanwell Road based firm has seen an increase in 95% mortgages, with over twenty more products on the market than this time last year. ‘‘In recent months we’ve even seen schemes designed for first-time buyers that have included features such as free standard valuations, cash-backs, and no completion fees. There are some really attractive deals on offer at the moment.’’ continued Pearson.

‘‘It is worth noting, however, that these products are only available for a short period of time. They won’t be around for long.’’

Pearson’s encouraging words are reinforced by the increase in the average percentage of loan-to-value (LTV) mortgage ratios for buy-to-let properties throughout 2013. The average LTV ratio has increased from 65% to over 75% in the last twelve months

‘‘It is positive news for landlords as the confidence increases throughout the market; It’s great to see a variety of products, and competition. I just hope this trend continues and we see more completions above 75% in the coming months.’’ said Pearson.

Despite the positivity across the market and the gradual growth, Pearson stressed that getting a foothold on the property ladder isn’t necessarily right for everyone.

‘‘I always look at each case individually. A young couple may have enough for a five per cent deposit, but purchasing the property may not be in their best interests. You have to look at the bigger picture. Consider the monthly payments, the stamp duty, the length of the mortgage and any penalties that may apply should you wish to change the terms.’’

‘‘People often comment on the British obsession with owning your own home.’’ continued Pearson. ‘‘However, statistics show that our fixation on home ownership does not reflect our percentage of homeowners, with countries such as Hungary, Spain, Greece and Italy all having higher percentages than the UK.’’

For more information regarding first-time buyer or buy-to-let mortgages, please visit www.mortgagesearchgo.com. Follow us on Twitter @MtgSearchGo.

Notes to Editors

For all press enquiries, including press shots, please contact James Davies of Compass Media Relations on 01443 803 959 or email james@compassmediarelations.co.uk


Find out more

Latest Posts