Mortgage blog: Welsh first-time buyers benefiting from more low-deposit mortgages

Posted 12 June 2013

First-time buyers in Wales are benefiting from a higher average loan-to-value (LTV) than borrowers in the UK as a whole. That's the findings of new research by the Council of Mortgage Lenders (CML) who also found that lending to first-time buyers in Wales rose by 5% in the first quarter when compared to the same period in 2012.

New CML research has found that the conditions for first-time buyers in Wales are, on average, more conducive to buying a home than across the UK as a whole. In the first three months of 2013, first-time buyers borrowed an average of 3.07 times their income and spent 18.3% of their income on initial mortgage payments. This is compared to a loan to income ratio of 3.23 in the UK and payments consuming 19.5% of a borrower's income.

In addition, the LTV ratio in Wales for first-time buyers remained at 85% in the first quarter, higher than the 80% LTV seen in the UK overall.

"A recent YouGov survey showed that 84% of adults in Wales wanted to be property owners in the next decade and the conditions in the country are certainly helping those people," said Keith Osborne, editor of "Lending to first-time buyers increased by £190 million between January and March compared to the same period last year, with first-time buyers accounting for 44% of all house purchase loans in Wales. The government have worked hard to support the housing market in Wales and it is clear this work is paying dividends."

The YouGov survey also found that 47% of adults in Wales indicated they would like to buy a home, either their first or subsequent home, in the next two to three years.

Peter Hughes, chair of CML Cymru, believes that while the figures are promising, there is more work to do. He said: "The desire to move into homeownership in Wales is strong but there are still a number of barriers in the housing market stopping people from buying or moving, which is why we are working with key stakeholders on initiatives aimed at boosting the housing market in Wales."

Click here to find out more about how can help you find the right mortgage.



Click here to see your activities