Positive house price figures bring First Time Buyers back

Katie Tucker, Technical Manager for the National broker Mortgageforce comments: "Halifax's house price figures today, combined with Nationwide's last week further reinforce the confidence we are seeing in the housing market as a result of improved mortgage availability.

"Stable house prices and the availability of higher loan to value mortgages support each other more than you might think: we all know that more 90% mortgages means more buyers can get on the ladder, but it works both ways, property values stabilising means lenders can offer higher loan-to-values without as much risk, so without needing as much deposit. We expect to see even more 85% - 95% deals out there soon."

Where 90% applications were sparse in June, they made up 4% of Mortgageforce's transactions in July. Tucker continues: "Half of purchase transactions were on 85% and 90% loan to value deals, which is high against trend and undoubtedly a result of pent up demand."

At 90% Loan to value this week, Britannia has a 4.59% tracker with fees of £599 (Cost for comparison 5.9% APR), and Saffron Building Society has a fixed rate at 5.65% for three years, for a fee of £495 (Cost for comparison 5.9% APR) both of which are available direct from the lender.

Purchasers of all types have also increased this month, accounting for 41% of Mortgageforce's July transactions compared to 23% in June.