FTBs 'will benefit from additional mortgage lending'

Date:Wednesday 15th April 2009
Author: Susanna Kavka

First-time buyers (FTBs) will benefit from new mortgages being offered at higher loan-to-value (LTV) ratios.

This is according to Helen Adams, managing director of FirstRungNow.com, who made her comments in response to plans recently announced by HSBC to offer a total of around £1 billion to buyers on "best buy" mortgage deals which require a deposit of only ten per cent.

She said: "I think it's good for FTBs and I'm looking forward to seeing other lenders follow suit and offer more attractive mortgages for FTBs."

Ms Adams went on to state that mortgages with LTVs of 90 per cent are "reasonable" products to offer and they are needed by people seeking to make their first moves on to the UK's property ladder.

She also pointed out that, not long ago, FTBs were having to find deposits worth between 25 per cent and 30 per cent of the value of the homes they were seeking to purchase.