Mortgage market 'still difficult for FTBs'

Monday, November 16th 2009

It is still difficult for first-time buyers (FTBs) to get a mortgage despite figures showing a rise in the number of home loans being approved.

This is according to Helen Adams, managing director of FirstRungNow, who said that new buyers unable to raise a sufficient deposit - typically because they do not have the parental help that other FTBs receive - are finding it hard to get a mortgage.

Recent statistics from the Council of Mortgage Lenders (CML) revealed that the number of home loans approved for property buyers rose for the third consecutive month in September, with FTBs accounting for a large proportion of this increase.

"It is just so difficult for them to get hold of a deposit. Lenders are still scared; they are hardly lending to first-time buyers at all and, if so, require a big deposit," Ms Adams stated.

Overall mortgage lending soared by 43 per cent in September compared with the same month last year, according to the CML.

It is believed that this is due to buyers taking advantage of the stamp duty holiday for properties worth up to £175,000.