First-time buyer deals 'not available through mortgage brokers in 2008's final quarter'

Date:Tuesday 17th February 2009
Author: Max Freedman

Appropriate mortgages for first-time buyers were often not available via mortgage brokers in last year's final quarter, it has been claimed.

The statement was made by the Intermediary Mortgages Lenders Association (IMLA), which said that most first-time buyers (58 per cent) could not get a deal via their brokers during this period.

Peter Williams, executive director of the IMLA, said that first-time buyers have been "hit extremely hard" by mortgage lenders requiring substantial deposits and said that they are being made to rent instead.

More than half (56 per cent) of mortgage brokers polled said that they could not get a mortgage for first-time buyer clients because the best deal could not be obtained through an intermediary.

In December, the IMLA found that its members were able to help some mortgage holders who were experiencing financial difficulty.

For 26 per cent of people in arrears, lenders were prepared to cut their payments for a determined length of time.