Large mortgage deposits 'a problem for FTBs'

Date:Friday 8th May 2009
Author: Susanna Kavka

First-time buyers (FTBs) are struggling to get hold of the large deposits currently required by banks, according to one industry practitioner.

David Amstell, founder of, claimed that the "fantastically low" interest rates are not being passed on to borrowers and the lack of available finance is a "recipe for a very slow market".

His comments follow figures released by Moneyfacts, which suggest that the number of mortgages available to borrowers with a ten per cent deposit had decreased by two-thirds over the course of the last six months.

He stated: "Whereas before, a FTB could borrow 90 to 95 per cent of the loan-to-value, you can't do that now. There may be some building societies doing a bit more, but 70 per cent is probably the average at the moment."

Mr Amstell added that there are still people out there who want to buy, but many are simply without the financial means to do so.