First time buyers are getting older

The general consensus is that a first time buyer is usually of a younger age as they climb onto the first rung of the property ladder. The recession, however, has had an impact on this of late and more and more have not been able to make that all important purchase, especially in the last year or so.

The CML, Council of Mortgage Lenders, keeps a record on the number of first time buyers and their records show that the demographics in this key group of individuals is, at least as of now, is slipping to an older age. According to their records and the Regulated Mortgage Survey (RMS), that number shows that the age has turned from 29 to 31 at least in the last six months of the survey.

According to the CML, “An increasing number of first-time buyers were getting help – most likely from parents or grandparents – to raise funds for a deposit. The latest estimates indicate that around 80% of young first-time buyers are getting help in this way.” When not receiving assistance from relatives of any sort, the average age is turning around to 37, at least this is the number according to the latest survey.

The LTV (loan-to-value) number that is being issued with the mortgage loan has a major effect on the number of individuals that are receiving the loan. The better the ratio the lower the age that apparently seems to receive the mortgage loan.