First-time buyers still experiencing mortgage issues, says moneysupermarket.com

Date:Tuesday 14th September 2010
Author: Max Freedman

Price comparison site moneysupermarket.com has pointed out that first-time buyers are still having a hard time securing mortgages.

Clare Francis, site editor of the company, made her comments in response to figures released by the Council of Mortgage Lenders (CML) showing that the number of people taking their first step on the property ladder declined in July.

She pointed out that the number of 90 per cent loan-to-value (LTV) mortgages is on the increase, but banks and building societies are still nervous about lending.

"Even though there are more mortgages available to those with smaller deposits, many people are struggling to get them because of the strict underwriting criteria being used," said Ms Francis.

In her view, another issue affecting the situation may be how much higher the interest rates are on 90 per cent LTV deals than for people with bigger deposits.

Meanwhile, the Association of Mortgage Intermediaries responded to the CML figures by suggesting that lending could become even more difficult if remortgagers re-enter the market.