More loan-to-value mortgages available for first time buyers, says mortgage expert

Date:Wednesday 4th November 2009
Author: Susanna Kavka

Increasing numbers of lenders giving 85 per cent loans to first time buyers is good news for the market, according to What Mortgage magazine.

Ben Wilkie commented after Moneyfacts released figures showing that the amount of 85 per cent loans given in October to 226.

He said lenders do not think the market will fall anymore and so need to get more first - time buyers on their books as they cannot kick start the market without them.

It will become easier for them to access the property ladder as loan-to-values become available, reducing the size of the deposit needed, and through incentives such as reduced fees, Mr Wilkie explained.

While it is 85 per cent loan-to-value mortgages that are currently becoming more popular Mr Wilkie said the market will "probably eventually get back to 90 per cent as being standard with some lenders doing more than that".

The Council of Mortgage Lenders reported in October that the number loans available for first-time buyers had increased by 32 per cent compared to August 2008.