Number of first-time buyers rockets in May 2013
The number of first-time buyers entering the property market in May 2013 soared by 42% compared to a year earlier, according to the Council of Mortgage Lenders (CML).
There were 55,900 loans worth £8.4 billion advanced for house purchase during the month – up 31.2% on the April 2013 and 18.7% up on May 2012.
This included mortgages to first-time buyers of 25,100 – 29% higher than the previous month and 24% up on May 2012.
This marks the highest monthly figure since late 2007, and is in "marked contrast to the low point of just 8,500 loans in January 2009", according to the CML.
While first-time buyers are borrowing more (£113,400 in May 2013, on average, compared with £110,000 in April and £105,000 in May last year), their incomes have also risen, from 33,500 in May 2012 to 35,700 in May this year.
The age of the typical first-time buyer remained at 29.
Paul Smee, director general of the CML, said: "Both the borrowing appetite of first-time buyers, and the availability of attractive mortgages for them, have improved markedly since a year ago.
"What is interesting is that, in contrast to some recent assertions, this is happening in parallel with the strengthening buy-to-let market. It is perfectly possible for both the buy-to-let market and the first-time buyer market to improve at the same time, as the evidence clearly demonstrates."
Changing mortgages without moving home. Property owners chiefly remortgage to get a better deal but some do so to release equity in their homes or to finance home improvements, the costs of which are added to the new mortgage. Even though you’re not moving house, you still need to engage solicitors, conveyancing and the new lender will require the property to be surveyed and valued.
The catch-all term applied to investors who buy properties with the sole intention of letting them to tenants rather than living in them themselves, with the proceeds from the let usually used for the repayment of the mortgage. Buy-to-let investors have to take out specialised mortgages that carry higher interest rates and require a much bigger deposit than a standard mortgage. Other expenditure can include legal fees, income tax (on the rental profits you make), capital gains tax (if you sell the property) and “void” periods when the property is unlet.