First time buyers seeking advice from brokers

According to a recent report an increasing number of first time buyers are turning to mortgage brokers in order to seek advice and assistance when it comes to getting a mortgage and getting a foot on the property ladder, as the tighter credit conditions has left many unsure as to how to progress when it comes to getting a mortgage. Brokers have reported a rise in the number of first time buyer enquiries as credit condition continue to get tighter across the nation.

The Council of Mortgage Lenders stated that the percentage of first time buyers mortgages taken out through brokers rose from 72.8% in the first quarter of last year to 82.5% in the first quarter of this year. The proportion of people going to brokers to remortgage has also risen, rising from 68.2% in the first quarter of last year to 79.1% in the first quarter of this year.

One industry official said that the figures showed that brokers are still able to get their hands on competitive deals despite the tighter credit conditions and more expensive borrowing in place these days. However, another industry official said that the number of first time buyers was still in short supply, as many are wary of taking the plunge whilst house prices are still set to fall over the course of the year.

The figures suggest that first time buyers are becoming increasingly cautious over trying to find loans for themselves due to concerns that tighter credit conditions may mean that they cannot get the finance that they need. Many are therefore turning to brokers in order to help them to find suitable finance and offer advice about getting an affordable mortgage.