First Time Buyers to Be Largest Group of Home Buyers in the Housing Market

First Time Buyers to Be Largest Group of Home Buyers in the Housing Market

The housing market has kept resilient during the past few years despite the uncertainty of Brexit expecting to cause an overwhelming sense of caution that would keep home buyers away. Now that the year is close to ending, it appears that the demographic that kept the market busy was that of the first time buyers. The ability to borrow cheaply and discover a property at a lower asking price than what it would have been only months ago were too much of an opportunity to ignore.

Reports have shown that the buying power of home buyers is allowing first time buyers to look past the usual first time purchase of a flat and instead consider a 3 bedroom home.

Even London will likely see first time home buyers as the largest group of buyers for 2019.

Savills has estimated that by 2025 first time buyers will account for almost one half of all home sales in the London area.

Saving for the deposit for a London home purchase is still the hardest obstacle to overcome for hopeful home buyers. The average home deposit for a first time buyer in the capital is £148,512 while the average household income of a first time buyer is £83,000.

The average overall deposit in the UK is £51,779.

The continued growth in first time buyers is expected to increase through 2024.

Those first time buyers are encouraged to start considering remortgaging long before their mortgage term ends and keep an eye on the remortgage lending market. By becoming educated on the current market and savings available to homeowners, it should motivate new homeowners to stay up to date on their repayments and other requirements of remortgaging.

It can be quite a shock and frustration for homeowners when they go to remortgage to save money and perhaps keep from being moved to a lender’s standard variable rate (SVR) that is twice or more what they are used to paying and discover they don’t qualify due to not being aware of requirements needing to be met during those first years of home ownership.

There is no harm in shopping online for a remortgage at any point of a homeowners mortgage term as it is non-obligatory to get a quick online quote from remortgage lenders or brokers. Being aware of what is available to homeowners now and then months later can help one better navigate the remortgage lending market and the remortgaging process when the time comes.

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