First time buyers require larger deposits
1 March 2010
According to recent research* first-time buyers now need large deposits if they are to be taken seriously when applying for a mortgage.
Despite renewed confidence in the property market mortgage lenders still require a minimum of a 5% deposit and are still relatively conservative when lending to first-time buyers.
The research coincides with recent statistics from the British Bankers Association, which highlighted that mortgage lending fell to a figure of 35,000 in January. This is a sharp drop, when compared with the 46,000 home loans that were approved in December 2009.
The fall in mortgage lending has been attributed to the end of the stamp duty holiday and the nationwide freeze of transactions due to the cold snap that affected the UK in January of this year.
* Research by My Mortgage Direct
Source: HouseLadder
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These particulars are intended only as general guidance. The Company therefore gives notice that none of the material issued or visual depictions of any kind made on behalf of the Company can be relied upon as accurately describing any of the Specified Matters prescribed by any Order made under the Property Misdescriptions Act 1991. Nor do they constitute a contract, part of a contract or a warranty.
