Mortgage situation makes first-time buyer figures 'unsurprising'

Date:Thursday 22nd April 2010
Author: Susanna Kavka

GfK Financial figures revealing that first-time property buyer (FTB) numbers are at their lowest level for 20 years have been called unsurprising by one expert.

FirstRungNow.com managing director Helen Adams said the figures are to be expected in light of the current situation in the UK mortgage market.

She claimed it is "very difficult" at the moment for FTBs, much more so than a few years ago when obtaining a loan was relatively easy.

"The mortgage lenders are reluctant to lend more than 85 per cent or 90 per cent of the property value," Ms Adams explained.

In order to get enough together for a deposit, she suggested FTBs now either have to "get extra work and save really hard, or go cupping hands to parents".

According to GfK, last year 347,000 people took out a mortgage for the first time. This is 100,000 fewer than the previous low recorded in February 1993.