FTBs 'still struggling to obtain mortgages'

Date:Monday 16th March 2009
Author: Susanna Kavka

First-time buyers (FTBs) are still struggling to obtain mortgages, an expert has said.

According to Yolande Barnes, director of Savills Residential Research, the recent reduction in the base rate of interest will not help people seeking to enter the property market.

She stated that it is not the cost of mortgages that is thwarting potential buyers but rather the lack of available credit.

Ms Barnes claimed that potential FTBs are unable to find the size of deposit needed to obtain a home loan.

She added: "The mainstream housing market will be, at best, indifferent to the latest interest rate cut."

However, the expert went on to say that existing home owners who are on tracker mortgages will benefit from the interest rate reduction.

Earlier this month, the Bank of England cut interest rates by 50 basis points to 0.5 per cent in a bid to stimulate the UK's ailing economy.