Mortgage market recovery 'contingent on return of FTBs'

Date:Tuesday 26th May 2009
Author: Susanna Kavka

The recovery of the UK's mortgage market is contingent on the return on first-time buyers (FTBs), it has been claimed.

According to chartered financial planner at Sharon Bratley, it is "about time" that big high street lenders begin offering competitive products to such people.

She made her comments following the recent launches of mortgages by firms including Abbey, Co-operative Bank and Lloyds which are aimed at FTBs.

Mr Bratley said: "Until FTBs can comfortably return to the mortgage scene, there is not going to be a recovery of the market, so these latest offerings are an encouraging sign."

She added that any FTBs considering entering the property market should ensure they know and understand all of their options, rather than "jumping in head first".

Recently, Helen Adams, managing director at property website First Rung Now, suggested that a lack of funding for the MyChoice HomeBuy mortgage scheme is bad news for FTBs.

The initiative enables consumers to choose and buy a home on the open market with the assistance of a flexible equity loan.