First time mortgage approvals at their lowest
Latest mortgage news from the CML (Council of Mortgage Lenders) highlights that figures are at an all time low for first time buyer mortgage loan approvals. Figures suggest a drop of 17,300 new mortgages for first timers.
The current housing market, property prices and interest rates have all contributed towards new buyers attitudes towards taking out a new mortgage. With recent hot topics of negative equity many first time buyer are simply quite hesitant with the risks involved. In addition, many lenders are now asking for higher deposits causing immediate affordability issues.
According to Michael Coogan from the CML he commented “"Tighter lending criteria have clearly made it more difficult for first-time buyers to enter the market. The stamp duty and shared equity measures announced by the government last week will be helpful to those first-time buyers looking to enter now, but many may be waiting for house prices to stabilise."
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