2019 the perfect moment for first-time buyers

First-time buyers are in pole position to take advantage of cheap borrowing and stabilising house prices to become homeowners.

Defaqto, the financial information firm, says 2019 is the perfect time for FTBs to climb on to the first rung of the housing ladder.

It points to house price growth slowing and even falling in some parts of the UK.

Meanwhile, lenders are offering more cheap mortgages while the Government’s Help to Buy schemes are still funding thousands of FTBs every year.

The Help to Buy ISA scheme will close to new savers later this year, so Defaqto reckons FTBs with their financial ducks in a row should get ready to make their move.

Defaqto revealed falling interest rates for high loan-to-value (LTV) mortgages – where a home buyer can borrow up to 95 percent of the value of their new home, meaning they must only find a 5 percent deposit – with the average interest rate now 3.23 percent compared to 3.95 percent a year ago.

In fact, Defaqto lists 10 lenders who also offer a two-year fixed-rate deal on a 95 percent mortgage with an interest rate below 3.0 percent, including Barclays and Post Office Money on 2.80 percent.

Katie Brain, insight analyst at Defaqto, said: “Buying a home is an expensive undertaking, and for many years, we have seen that first rung of the property ladder move further out of the reach of first-time buyers.

“Now, with stalling house prices and cheaper borrowing, we are entering a period of opportunities for buyers looking to make their first home purchase.

“However, if they wish to take advantage of the government’s Help to Buy ISA scheme, they are going to have to hurry.

“Securing a 25 percent bonus from the government is not to be sniffed at, but this really is a ‘use it or lose it’ moment for first-time buyers.”