First-time buyers made up 20% of mortgage applications in July at national mortgage brokers Mortgageforce, compared to 9% in June.
Katie Tucker, technical manager for Mortgageforce, said: “Halifax’s house price figures, combined with Nationwide’s last week, further reinforce the confidence we are seeing in the housing market as a result of improved mortgage availability.
“Stable house prices and the availability of higher loan-to-value mortgages support each other more than you might think: we all know that more 90% mortgages means more buyers can get on the ladder, but it works both ways, property values stabilising means lenders can offer higher loan-to-values without as much risk, so without needing as much deposit.
We expect to see even more 85% - 95% deals out there soon.” Where 90% applications were sparse in June, they made up 4% of Mortgageforce’s transactions in July.
Tucker added: “Half of purchase transactions were on 85% and 90% loan-to-value deals, which is high against trend and undoubtedly a result of pent up demand.”