The UK first-time buyer market has remained subdued over the last few years. First-time buyers generally represent the highest risk bracket and so lenders have shied away from offering them mortgages. However, recently there has been a return to higher loan-to-value products with lenders offering products that are aimed primarily at this market. Nonetheless, a recovery is likely to remain slow.
The first-time buyer market remains subdued. The average age of a first-time buyer is now 29 although this rises to 36 for those who have not received any financial assistance. There were approximately 200,000 first-time buyers in 2010.
A plethora of new mortgage products aimed at first-time buyers have arrived in the last few months. However, many of the products are being offered by smaller providers and require support from parents or guardians.
Regulation could play an important role in the future of the first-time buyer market. The findings of the Independent Banking Commission and the DP11 consultation may raise costs for retail banks which could subsequently result in higher mortgage rates for consumers