It does "not make sense" for mortgage lenders to penalise FTBs

Date:Tuesday 14th July 2009
Author: Susanna Kavka

It does not make sense for mortgage lenders to charge rates which are too high for first-time buyers (FTBs).

This is according to Helen Adams, managing director of, who said that by penalising such people, banks and building societies would inhibit the whole property sector because it requires people buying homes at the bottom of the ladder to keep the market moving.

While there are some people who can afford to pay more for their home loans, those who are purchasing their first properties and have less equity will struggle with high rates, she added.

Ms Adams said: "There are some on the property ladder who perhaps could afford it more - those people who have a large chunk of equity in their property."

Earlier this month, Peter O'Donovan, head of mortgages at Bestinvest, described the fall in the number of mortgage products available in the UK as "depressing".