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First time buyer mortgages difficult to obtain

6/02/2008

Majority of first-time buyers feel that it is becoming impossible to obtain a cheap mortgage quote.

Lenders are cutting the number of 100 per cent mortgages and being more specific, this could actually prevent first-timer buyers from falling into large debts.

Moneyfacts figures stated that 11 lenders had reduced LTVs since December 2007, over 10 lenders stopped selling 100 per cent mortgages.

Head of mortgages at Moneyfacts, Darren Cook stated that lenders had experienced a big "check out" with the ongoing credit crunch, riskier borrowers were not taken into consideration.

He added: "I think lenders are still supporting first-time buyers, they're possibly just being a little bit more prudent in how they advance their funds. Whether that's supported by the parents' property or whatever, lenders are willing to take that into account."

Mr Cook commented: "Not just that the lender is worried about lending – in turn that becomes responsible lending in that they don't over-commit first-time buyers, or any house purchaser."

 


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