First-time buyers ‘experiencing difficulties’

A number of first-time buyers are struggling to get onto the property ladder as they are finding it hard to amass deposits.

This is according to Helen Adams, managing director of FirstRungNow, who observed that, although the rise in mortgage numbers appears to be a sign of recovery, it is still “extremely difficult” for first-time buyers to make purchases.

She noted that, typically, this affects those without parental help as “there aren’t many … with that kind of money”.

Ms Adams went on to say that the loan-to-value ratio could be enhanced for “good borrowers” as getting hold of deposits is so difficult.

However, she further commented that lenders are still afraid and are rarely giving out loans to first-time buyers at all. If they do, a big deposit is required.

Her comments follow recently published figures by the Council of Mortgage Lenders, which revealed that there were 6,200 first-time buyer loans for houses between £125,000 and £175,000 in September.

By Sarah Adie