95% mortgages 'needed to revive the market'

Date:Friday 17th October 2008
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Mortgages of 90 and 95 per cent loan-to-value (LTV) need to return in order to revive the property market, it has been claimed.

Gareth Samples of Your Move said that without first-time buyers and buy-to-let investors, there is no "bottom of the chain".

Mr Samples went on to explain that with no first-time buyer mortgages of 90 to 100 per cent, a "whole sector" of the market is out.

He said that until such deals are back in place, the market is not going to improve, although he does not believe 100 per cent mortgages are going to return.

According to research by the Co-Operative Bank and Places for People in September, the average first-time buyer feels the need to save £19,100 to get on to the property ladder.

Furthermore, 54 per cent believe that renting is a waste of money and nine per cent are not prepared to make sacrifices to buy a house - a figure that was 57 per cent the year before.