First-time buyers are 'endangered species'

Date:Wednesday 19th November 2008
Author: Rachel Fletcher

A young family unable to secure a mortgage for its first home has been told by an expert that it is part of an 'endangered species'.

The Independent's "House Doctor" made the statement to the family, which has £18,000 in savings to try to purchase a £205,000 property.

Andrew Montlake of mortgage broker Cobalt Capital, told the paper that first-time buyers, with little to deposit and needing a high loan-to-value deal, are seen by lenders as high risk.

The House Doctor added that lenders are "spooked" by falling house prices.

As a result, the family was advised to save £20,500 or try to secure an offer for £180,000.

Meanwhile, estate agent Savills has warned that even with falling property prices, investors may buy up houses before first-time buyers can save the necessary deposit.

The Times reported spokesperson Marcus Dixon as saying that first-time buyers had "no choice but to just save up".