Expert suggests "not all first-time buyers are equal"
first-time buyers have been told that the reason that some struggle to secure a reasonable home loan, even with a sizeable deposit, is because they are not all equal.
Responding to question from a reader in the Independent, Andrew Mortlake of broker Coreco indicated that whereas a lump sum of ten per cent on the value of a property could once offer house hunters competitive rates to choose from, borrowers now need around 15 per cent to land a satisfactory deal.
He said lenders are understandably anxious about offering loans to first-time buyers with such a small deposit because of the fear of negative equity if prices fall.
Earlier this week, the chairman of the Home Builders Federation Stewart Baseley warned the continued problem in the mortgage market was having a knock-on effect on the construction sector.
Suggestions that some first-time buyers may be at a disadvantage compared with others when it comes to securing a home loan may encourage more people to consider looking for property to rent in the London borough of Wandsworth or elsewhere in the country.
By Andy Britten
Published 28th May, 2010
© 2010 Estates IT Limited
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More people may be encouraged to look for property to rent in the London borough of Wandsworth or elsewhere in the country after a home loans expert indicated that "not all first-time buyers are equal" when it comes to securing a mortgage.