First time buyers to secure affordable mortgages in 2011
The best mortgage deals in over a decade are becoming available to first time buyers, according to new research.
The review, carried out by mortgage provider Halifax, found that first time buyers only paid an average of 27 per cent of their disposable earnings for a property in September 2010.
According to the lender's records, this is the lowest proportion of payments since December 1998, making securing a mortgage much more affordable for first time buyers looking to get on the property ladder.
In comparison, first time buyers were really struggling to afford their mortgages in September 2007, paying over half (58 per cent) of their earnings.
First time buyers can now afford to buy in around one in four local authority districts – more than a five fold increase on figures from 2007, when only six per cent of areas were affordable.
This decrease in mortgage payments has been attributed to cheaper, more affordable house prices and the historically low base rate.
Commenting on the developments, housing economist Martin Ellis said: "Whilst the tightening in lending criteria experienced across the mortgage industry since the onset of the credit crunch in 2007 deterred first-buyers from trying to secure mortgage finance, there are now encouraging signs of a modest improvement in mortgage availability."