As first-time buyers continue to return to the market, with levels rising to 47 per cent of its borrowers in March from 35 per cent in April last year, more borrowers are stretching themselves financiallyand an increasing number are opting for mortgages that give them immediate financial reward.
Peter Gladdy, Director of Mortgages Direct, said: First-time buyers are returning to the market as confidence is budding over the spring period, however these buyers are still struggling to get on the property ladder and are financially stretched to the limit.
Cash back mortgages are winning them over as they see the immediate benefit of receiving cash on completion to help finance vital purchases, such as basic furniture or to even recuperate the amount invested in legal fees etc.
The index also reveals that demand for two-year fixed rate mortgages continues to rise, with 68 per cent of borrowers opting for them, compared to just 64 per cent in February.
Gladdy said: The increase in borrowers opting for two-year fixed rate mortgages indicates that borrowers are now incredibly rate sensitive. They are opting for the lowest deal available and two-year fixed rates have been among the most competitive.
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