Research by Trussle has shown a 182% increase in first-time buyer (FTB) mortgage applications and a 176% increase in next-time buyer applications over the last two months, in comparison to the two months previously.

Sign-up enquiries have increased by 35%.

However, the volume of FTBs being disqualified due to high loan-to-values (LTVs) is seven times higher than the previous period.

Nationwide Building Society

Nationwide enhances lending options for first-time buyers

At Trussle, mortgage applications for a property of up to £500,000 increased by 40% when comparing the first six months of 2019 and 2020.

64% of Trussle’s mortgage enquiries over the past month have been for properties less or equal to £500,000, suggesting that a large proportion of the housing market will benefit from recent stamp duty reforms.

Miles Robinson, head of mortgages at Trussle, said: “Like many other industries, the mortgage market is undoubtedly in a state of flux, with house prices fluctuating and lenders pulling mortgage products.

“But the more positive news is we’re beginning to see some green shoots.

“House buying has for decades been a sign of economic recovery and we believe this situation is no different.

“Estate agents are recording a real surge in demand for houses.

“Similarly record interest rates mean there are some great deals for those who are in the right position.

“However, we still need to tread carefully.

“The stamp duty holiday will undoubtedly add a much needed boost for those who are looking and able to buy.

“Over time, we hope to see lenders add a wider variety of products to the market to make homeownership more accessible.

“Any current or aspiring homeowners who are concerned about the impact of coronavirus and what it might mean for their mortgage, should seek professional advice from a broker to discuss the options available to them.”