Market turmoil ‘hits first-time buyers hardest’
Rob Houghton, of Reallymoving, says first-time buyers are the group most exposed and vulnerable to rising rates in the home loans market.
First-time buyers are most exposed and vulnerable to the current turmoil in the mortgage market, new figures suggest.
Around nine out of 10 first-time buyers in the UK – at 90.5% – used a mortgage to buy a home in the past six months, which is the highest of any buyer group, according to comparison website Reallymoving.
In March, 92.6% of FTBs used a mortgage – the highest proportion in more than a decade. In comparison, 87% of upsizers, 82% of investors and 40.5% of downsizers used a mortgage during the same period.
Hardest hit
Mortgage reliance among first-time buyers is consistently high across the UK, exceeding 90% in every region except the North East at 87.7%, Wales at 88.5% and Yorkshire & Humber at 89.8%.
However, the impact is being felt across the market with 87% of upsizers, 82.1% of investors and even 40.5% of downsizers using a loan to complete a home move.
Buyers in London are hardest hit, with 87.4% of buyers using a mortgage, which is the highest of any UK region.
First-time buyers account for 63% of all buyers in London, the highest first-time buyer market share of any region, making its housing market especially sensitive to sudden changes in lending conditions.
Expectations that borrowing would become cheaper this year have been turned on their head.”
Rob Houghton, Founder and CEO at Reallymoving (pictured), says: “Expectations that borrowing would become cheaper this year have been turned on their head.
“Lenders are spooked and amid the uncertainty we’re seeing hundreds of products being pulled, with rates rising across the board.
“Anyone hoping to buy this year will be concerned, particularly first-time buyers who are most heavily dependent on mortgages, and existing homeowners with deals due to expire in the next few months.”
