First-time buyers do not benefit from mortgage affordability, says Savills

Date:Monday 20th December 2010
Author: Susanna Kavka

A source from Savills has suggested people applying for mortgage finance to take their first step on the property ladder are not currently being offered affordable terms.

Lucian Cook, director of residential research at the real estate firm, pointed out that first-time buyers will often have to put together a sizeable deposit and pay higher interest rates for their home.

In his opinion, such consumers are likely to be the last people to benefit from any easier conditions in the property industry.

Mr Cook noted that people who currently own a house may be able to see their financial situation in a favourable light in comparison with renting, but this "affordability advantage" does not extend to first-time buyers.

He added: "It is very difficult to predict how - and over what period - mortgage lending becomes easier to get hold of."

MyMortgageDirect director Catherine Hearnden recently encouraged consumers to consider second charge mortgages if they are struggling to secure home finance.