FTBs still struggling to secure mortgages, expert claims

Date:Friday 19th June 2009
Author: Max Freedman

People seeking to take their first step on to the property ladder in the UK are still struggling to secure mortgages, it has been claimed.

Commenting on the issue, Martin Gahbauer, chief economist at Nationwide, said that first-time buyers (FTBs) are finding it challenging to afford the deposits required by lenders.

He also said that while house prices seem to have stabilised following recent falls, this is not due to an increased demand.

Mr Gahbauer added: "For a real recovery to take place, you need a greater [number] of FTBs coming into the market because that is really what will provide the necessary injection of equity to get things moving across the entire housing chain."

According to the expert, there is currently "very little" money available in the UK's banking sector and this is preventing banks and building societies from lending as much as they otherwise would.

However, Helen Adams, managing director of FirstRungNow.com, recently claimed that mortgages aimed at FTBs are increasing in number.