90% mortgages 'do not give good rates'

Date:Wednesday 4th February 2009
Author: Susanna Kavka

Mortgage rates for people with small deposits are not attractive, it has been stated.

Writing in the Guardian, Virginia Wallis was giving advice to a first-time buyer with a salary exceeding £30,000 and looking to buy with a ten per cent deposit.

The would-be homeowner needed a mortgage of £117,000 and lived with their parents.

Ms Wallis advised the would-be buyer to wait a year and save instead, pointing out that there are not many mortgages available for a 90 per cent loan-to-value and that the rates on such products are not the best there are.

She also pointed out that trying to borrow four times one's salary is difficult.

MyMortgageDirect recently urged first-time buyers to seek professional advice from independent mortgage brokers.

Director Catherine Hearnden said it was "absolutely vital" to do this in order to assess the entire market and to be able to compare deals properly while having everything explained.