First-time
buyers are making a comeback, according to experts
Alliance and Leicester has conducted a survey which indicates that
mortgage growth is strong in the UK, while mortgage affordability is at its best since the second quarter of 2004.
Around 16 per cent of potential
first-time buyers under 30 intend to get a foot on the mortgage ladder this year, according to the survey.
The study also found that borrowing on
credit cards and
personal loans is down for the first time in seven years.
Alliance and Leicester's Borrowing Monitor shows that consumer confidence in
mortgages is increasing, particularly when moving home, with 15 per cent of UK residents thinking of moving, buying a
property for the first time or
remortgaging by next winter.
This is up from 7 per cent in January who were thinking of acting before the summer and although not everyone acts upon their intentions, the company believes that it shows improved confidence in the market.
Chris Rhodes, managing director of Alliance and Leicester retail banking, commented: "We are seeing greater confidence in the mortgage market from consumers. It’s particularly pleasing to see the increased confidence amongst the under 30s.
"Increased first-time buyer activity enables others to move up the ladder. Affordability remains good, which means that despite renewed mortgage borrowing, consumers are taking a responsible attitude."
