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First time buyers struggle through mortgage crisis

10/12/2007

Today it was confirmed that the UK's housing market was to reach its "tipping point", however affordability could still be overwrought for first-time buyers, more news follows up.

Chief executive, Paul Holmes the officer of Firstrung, spoke further explaining that although house prices are expected to decrease, individuals looking to get onto the property ladder will struggle getting the right mortgage deal. Being a first time buyer you are limited to certain types of deals only.

Latest struggle within the credit market has witnessed numerous mortgage products being excluded from the market place and so leaving first-time buyers unlikely to find products that relates five to six times their income.

Mr Holmes added, "Lenders will retreat and they will have to because the wholesale from the market where lenders borrow their money will not allow them to do anything else."

Halifax only just reported that residential property prices dropped by 1.1 per cent during November period, this was due to the market feeling the blow of all new interest rate increases between July 2006 and July 2007.

 



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