The company says the housing market shares many features with how it was in the late 1980s with borrowers getting creative to jump financial hurdles. It says in the late 1980s soaring property prices led friends and siblings to pool their resources in order to get a foot on the ladder. Many young people are now doing a similar thing.Paul Hearnden, managing director of My Mortgage Direct, says: “Over the past three months we have seen a 15% rise in enquiries from first-time buyers. The stability of interest rates and the stagnation of property prices have coaxed prospective purchasers to take the leap into the property market.” “Joint applicants are much better placed to secure an affordable property and mortgage to suit. People are realising they have to be creative if they are to succeed.”
Brokerage My Mortgage Direct says stagnant property prices and stable interest rates are encouraging first-time buyers back into the mortgage market.