Those currently seeking first time buyer mortgages now face an average house price of £169,162, as house prices edge up another 0.5% during May, according to new estimates from Nationwide.
When planning your first time buyers mortgage, it is worth considering that prices have risen modestly in 12 of the last 13 months – and are likely to continue to do so, Nationwide predicts.
This pushes house prices up by £15,000 in the past year, Nationwide said. However, it was not all bad news for those of us considering a first time buyer mortgage, as the rate of year-on-year house price inflation is actually down to 9.8%, compared with 10.5% in May last year.
“Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months,” said Martin Gahbauer, chief economist at Nationwide.
Experts speculate that many potential takers of first time buyer mortgages may be holding back on a decision, and waiting to see how they will be affected by the government’s Budget on 22nd June.
The amount of mortgage lending was up in April by 2%, according to figures from the Bank of England.
Nonetheless, the Council of Mortgage Lenders (CML), has commented on what it sees as a low level of mortgage deals, due to the continued reluctance of lenders to release funding, particularly for first time buyer mortgages deals.
The process of finding a first time buyers mortgage could be blighted by ‘prolonged mortgage rationing and higher borrowing costs’ as a result of current lender policies, said the CML.
