The figures from the National Association of Estate Agents show that just 19 percent of buyers in November were first time buyers.

The figure reflected a drop of 3 percent compared to the previous months, and was at its lowest level since last November. In comparison around 45 percent of new buyers in May of this year were first time buyers, and difficult market conditions combined with seasonal factors are thought to have contributed to the sliding level of first time buyers entering the property market towards the latter part of this year.

One of the factors that may have affected the number of first time buyers getting onto the property ladder in November is the end of the stamp duty holiday, which comes to an end at the end of this year.

Many first time buyers have flocked to take advantage of the stamp duty holiday over recent months, but many may have feared that buying a property towards the end of the year may have meant that they would not be in time to benefit from the stamp duty holiday before it came to an end.

Gary Smith, the president of the National Association of Estate Agents, said that ending the stamp duty holiday so suddenly could really impact upon the property market. He said: “Any tax holidays result in a distortion in the market and in the case of stamp duty, needed to be carefully managed and phased out, rather than falling off a cliff. Unfortunately, as first-time buyers often form the foundation of selling chains, there could be repercussion throughout the sector.”

First time buyers at lowest level in a year is a post from: Glitec Loans

The number of enquiries from first time buyers is said to have peaked in September, and some industry officials have claimed that this marks an increase in confidence in the property market.

One mortgage advice website stated that September saw the highest level of searches by first time buyers, and separate reports have claimed that it is now first time buyers that are keeping the property market buoyant, with remortgaging levels having gone through the floor.

Many first time buyers are keen to get onto the property ladder as soon as possible, as many fear that property prices may start rising sharply again and that mortgage interest rates may soar if the base rate goes up in the coming months.

There are, in fact, many reasons why first time buyers may be clamouring to get onto the property ladder sooner rather than later.

Firstly, property prices have been rising over recent months but are still far lower than their peak in 2007.

Secondly, with the base rate at an all time low some first time buyers are hoping to get a good deal that will help to keep their repayments down.

Finally, the government’s stamp duty suspension on properties up to £175,000 is still on till the end of the year, and many may want to take advantage of this.

However, there are still obstacles in the way for first time buyers, the major one being the level of deposit that most lenders are demanding in return for access to their more favourable and competitive mortgage deals.

Increased demand for mortgage advice from first time buyers seen as sign of recovery is a post from: Glitec Loans

The month saw a drop in the number of people looking to remortgage, but there was a return to the market – albeit a gradual one – of first time buyers who helped to keep the sector buoyant.

According to the Council of Mortgage Lenders there was an increase of 29 percent in new mortgage lending in August compared to the same period last year.

One official from the CML said that property purchasing was definitely back on a stronger footing even though recovery of the property market would be a gradual and drawn out process.

He said: “It will be a drawn-out recovery process, with seasonal ups and downs, but house purchase activity is now on a firmer footing.” The CML figures did show that remortgaging acticity remained weak at present.

The reports also showed that many people are now coming to an end of their fixed rate mortgage deals, which many took out for two or three years when interest rates were on the increase in the hope of protecting themselves against soaring repayments. However, interest rates have been at an all time low of just 0.5 percent for seven months, so many will be relieved that these higher rate fixed mortgages are coming to an end.

Industry officials have predicted that those whose fixed rate mortgages are coming to an end will shy away from remortgaging to another fixed rate deal for the moment, as the base rate is so low that they will want to benefit from the savings that are available on standard variable rate mortgages.

However, remortgaging activity may pick up later in the year when there is a greater threat of the base rate increasing again.

Mortgage lending propped up by first time buyers is a post from: Glitec Loans

The news comes just as many first time buyers may have given up hope given that more and more 10 percent deposit deals are disappearing from the market and house prices have been rising over recent months. The scrapping of legal fees on these mortgages will give first time buyers a little more leeway when it comes to affordability.

However, there is a snag. The new Homebuyer Plus mortgages from Abbey vary in terms of interest rate depending on how much deposit the borrower is able to put down, and in order to qualify buyers will need a deposit of at least 20 percent of the property value, which for many could prove to be a big problem.

For those that are able to raise this deposit there is the opportunity to get a mortgage that does not charge for legal fees or for valuations.

Industry officials have said that first time buyers that do qualify for these mortgages stand to save up to £1000 on the cost of buying a home.

One official said: “These mortgages should save first-time buyers typically around £800 to £1,000. Legal work costs about £500 while the valuation depends on the price of the property, but is around £295 for a property worth £200,000.”

Whilst many first time buyers have been struggling to get onto the property ladder and afford a mortgage some officials have said that they are now better off than they were a couple of years ago.

This has been put down to the fact that property prices are now far lower than they were at their peak and stamp duty has been suspended on properties up to £175,000, whereas the previous threshold was just £125,000.

First time buyers get some good news is a post from: Glitec Loans

However, over the past few months there has been a slight revival in property prices, partly fuelled by increased demand and low supply, and whilst property prices are not back to the level that they were at their peak they are now back to the level that they were at around twelve months ago, according to reports.

The news that property prices were falling probably came as good news to many people that had been waiting in the wings to get onto the property ladder, but were unable to do so due to extortionate property prices in the UK.

However, despite the fall in house prices many first time buyers still cannot achieve their dream of homeownership because property prices are still too high. One industry official said that many first time buyers are not being approved for mortgage finance because property prices are still too high.

With the average property price at £160,000 the industry expert said that a couple would need to be earning £60,000 between them or a single person would have to be earning £50,000 to be able to get a mortgage.

He stated: “The majority of first-time buyers I come across, if it’s a couple, have said that they’re earning somewhere in the region of £45,000 between them. So, property is still expensive.”

Another problem that many first time buyers continue to have is raising an adequate deposit to be able to get an affordable mortgage, as some lenders are charging double the interest rate to those that have only a 10 percent deposit compared to those with larger deposits such as 40 percent.

Property still not affordable enough for first time buyers is a post from: Glitec Loans

However, it is a great time in your life and one that you should thoroughly enjoy.

The first thing to do when you decide to purchase a home is to figure out how much you can afford to spend. This is basically how much money you can afford to borrow, Do your homework by finding the areas in which you want to live and then searching the prices of homes in these neighbourhoods.

At the present time the interest rates are the lowest they have been in quite some time, which means that your mortgage payments will be lower. You do have to keep in mind that once the recession is over, interest rates will start to climb and that will mean higher monthly payments, even if you do lock your mortgage in for a period of time.

Making a budget is an important part of the planning process when buying a home for the first time so that you can see how much money you have to work with each month. This is one essential part of the application process because lenders will scrutinize your finances to make sure you can afford the house you want to buy.

There is more to buying a home than just taking out a mortgage for the purchase price. First of all, lenders will not give you a mortgage for the full purchase price. You will be expected to make a deposit of about 25% percent of that price although there are lenders who have more lenient terms for first time home buyers. However, there are none that will finance 100% of the price.

In addition to coming up with the deposit on the mortgage there are other fees involved. These are called closing costs and include the solicitor’s fee and the administrative fees charged by the lender. You can choose to pay these on your own or have them included into the amount of your mortgage, which will increase the amount of money that you owe and on which you must pay interest.

Then comes the cost of home insurance. In order to sign the final papers and receive the keys to your new home, you must show proof of having home insurance. This is another expense that you may not have thought of or budgeted for. After you move in, depending on where you live, you will also have council tax to pay, water rates, gas and electricity bills and perhaps ground rent. You do have to budget for all these additional expenses.

When you plan to purchase a home for the first time, it is wise to research the lenders to find the one with the best interest rates and arrangement fees. Once you have initial approval for a mortgage, you know the price range in which you can look at houses. When you find one that you like, have someone used to buying homes view it with you. This person may be able to spot a defect that you wouldn’t recognize and save you from having to make costly repairs shortly after you move in.

You do have to make an offer to the seller and this is usually lower than the asking price because you want to save some money wherever you can. If your bid is accepted then you have to start making arrangements with a lender for the final approval of the mortgage. It usually takes about a month from start to finish once you place a bid, have it accepted and be able to move into your new home.

Tips for First Time Home Buyers is a post from: Glitec Loans

Figures have shown that in June the majority of mortgage related enquiries from those looking for advice came from first time buyers, many of whom have struggled to get affordable mortgage finance due to restrictions put into place by lenders.

During the month of June over 40 percent of those looking for mortgage advice from one industry group were first time buyers according to officials from the group.

The next highest number of enquiries came from those that wanted to remortgage according to the group. Officials from the group have said that the increase in enquiries from those looking to remortgage suggests that more and more people are thinking to trying to get better rates by changing their mortgages.

He said: “These latest figures suggest a stirring amongst those thinking about re-mortgaging, after the previous two months drop in re-mortgage enquiries.”

Whilst mortgage lending has been increasing over recent weeks, according to various figures and data, banks are still being highly selective when it comes to lending money for mortgages, and many first time buyers are suffering as a result.

This has led to more potential buyers turning to industry officials for advice on getting a mortgage, as many are keen to get onto the property ladder whilst the base interest rate is still at its all time low and whilst property prices are still down compared to their peak in 2007.

Higher deposit requirements from lenders are also causing problems for first time buyers who have no previous property from which to take equity.

Many first time buyers have been seeking mortgage advice is a post from: Glitec Loans

For the decade leading up to 2007 many first time buyers found that they simply could not afford to get a property because of soaring property prices that put the prospect of getting a home way out of reach for many first time buyers. However, in the autumn of 2007 some first time buyers thought that their luck had changed.

October of 2007 saw the house price bubble burst, and having peaked house prices in the UK started to plummet, much to the delight of first time buyers. For many this marked the chance to try and get onto the property ladder after years of waiting, and many thought that a few more months of waiting could see property values fall to levels that they may possibly be able to afford. They were right, in that property prices did start to fall month on month, and with each cut in value came an increased likelihood of affordability for the average first time buyer.

However, what many first time buyers had not been expecting was the dire effects of the global credit crunch, which also gripped the UK that same year. Within months banks had tightened their lending criteria and amongst the groups that were set to suffer were first time buyers. The new stringent regulations by banks meant that getting a mortgage loan was far more difficult, and marked the end of the days of easy credit, which had been seen for the past ten years.

Many of the mortgages that had been popular with first time buyers, and had given them a helping hand onto the property ladder disappeared, such as the 125 percent and the 100 percent mortgages, which many had relied on because they had little or nothing in savings to put down as a deposit on a property. This immediately left many first time buyers out in the cold. Then came even worse news as the once traditional 95 percent mortgage started to disappear. All of a sudden lenders started to demand extortionate deposit levels such as 25 percent and even 40 percent of the property value in some cases.

It seems that first time buyers are in a no win situation. At the time when property prices were too high to afford they could easily get finance for 125 percent or 100 percent of the value of the property but could not afford to take out such a big mortgage due to the repayments. However, just as property prices plunge to affordable levels and the base interest rate falls to its lowest level in history, at just 0.5 percent, first time buyers have found that lenders are no longer prepared to offer them finance, and those that are demand a far higher deposit than the average first time buyer can afford.

How first time buyers are faring in the current climate is a post from: Glitec Loans

A number of reports had suggested that there could be a return of high loan to value mortgage loans, but lenders have said that this is not the case, and that the mortgage lending market is still restricted.

The warning came from the Council of Mortgage Lenders, which said that its members’ lending ability was ‘constrained for the foreseeable future.’ 99% of all mortgage lending in the UK is covered by members of the Council of Mortgage Lenders.

The warning comes amidst a variety of reports that have suggested that there may be improvement in the near future, and that consumers may be able to get bigger mortgages and lower deposits from lenders.

An official from the CML said: ‘The underlying problem is that we don’t have access to the range and type of funding we used to have. Government intervention (namely through lending agreements with semi-nationalised banks) has improved the situation but the constraints on lenders are real.’

Officials added that there was no real chance of any rapid change in this situation, despite intervention from the government to try and boost mortgage lending.

However, one group has said that it is vital that lenders start going back to normal risk based lending and assessing applications as before in order to get first time buyers into the market. One official said: ‘Now is the time to resume normal risk-based lending and to move back to the core competency of assessing risk and demonstrating underwriting skills.’

Lenders warn over increased expense on mortgages is a post from: Glitec Loans

For the past decade first time buyers have been priced out of the market due to the high value of homes, and many were delighted when house prices started coming down over the past couple of years.

However, whilst house prices are considerably lower now than they were during their peak in 2007, and the base interest rate has come down to its lowest level in the three hundred and fifteen year history of the Bank of England, at 0.5 percent, many first time buyers have still found that homeownership is out of their reach due to more stringent regulations from lenders as a result of the global credit crunch.

Many lenders have been demanding crippling deposit levels for their more affordable mortgages, which most first time buyers cannot afford as they have no previous property from which to take equity.

Moreover, mortgages that were once popular amongst first time buyers have all but disappeared, including 100 percent and even 95 percent mortgages. Many lenders have been demanding deposits of at least 15 or 20 percent of the property value.

However, the good news is that some industry officials have predicted that first time buyers could enjoy access to mortgages that require a deposit of only 10 percent of the property value this summer, as lenders try and ease up on lending a little more.

It is claimed that over twenty lenders are now prepared to consider borrowers with a lower deposit of 10 percent, which is an improvement on the past year or so although it is much lower than the figure before the credit crunch hit.

First time buyers could enjoy lower deposits this summer is a post from: Glitec Loans