The number of 95% loan-to-value (LTV) mortgage deals available to first-time buyers is at the highest level since before the financial crisis, according to Mortgage Advice Bureau.
The number of 95% LTV deals currently open to first-time buyers is at a four-year high, with 59 deals currently available from 21 different lenders. This is up from just 25 in February 2011, nine back in 2010, and only three at the same time in 2009.
The Mortgage Advice Bureau suggests there could be over £210 million worth of mortgage finance available to first-time buyers with a 5% deposit right now. Based on the average house price bought by first-time buyers, this is sufficient for over 2,000 first-time buyers to buy their first home right now.
During the 1980s and 1990s there were typically well over 500,000 first-time buyers every year – well over 1,350 a day, whereas currently there are only around 520 a day.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Well over 85% of young renters aspire to become homeowners but the vast majority of these say the fact they cannot raise a deposit is the key reason for not buying.