In contrast, the number seeking to fix for two-years declined year-on-year, with Accord receiving 48% of applications for this loan term in January, compared to 63% in the first month of last year.
Appetite from new homeowners with a 15% deposit increased the most, by 7%, while 90% LTV mortgages accounted for the largest amount of Accord’s first-time buyer applications in January increasing by 4% from January 2017.
Ben Merritt, mortgage manager at Accord, said: “Recent figures from UK Finance showed the highest number of first-time buyers in the housing market in a decade in 2017, so this market is currently in a really strong position.
It’s pleasing to see more first-time buyers getting their foot on the property ladder and is perhaps unsurprising that the numbers continue to rise given the recent changes to stamp duty and November’s Bank Rate rise.
Our data shows that first-time homeowners are making canny decisions about the type of home loan they choose, such as opting for longer terms, which reflects the sound advice brokers are likely giving to their clients.
More and more first-time buyers are turning to a broker, perhaps because choosing a mortgage is one of the biggest challenges they will face in their adult lives. The growth in intermediary share of lending over the past five years, rising from 53% in 2012 to 77%[i] in 2017, clearly demonstrates the value borrowers place on the role of a broker.”
