First-time buyer mortgages diminishing, figures show
first-time buyers continue to struggle to enter the property market, new statistics have revealed.
The latest figures from the Council of Mortgage Lenders (CML) indicated that the number of loans granted to such purchases has halved over the course of the last year.
Just 8,900 mortgages were awarded to first-time buyers in January, the body found, down from 18,000 in the same month in 2008.
And with the average deposit required reaching a record high of 24 per cent, those looking for a house or flat in London may be prompted to rent rather than buy.
"Government schemes to restore the flow of funds are primarily focused on a few large banks and recent lending commitments by a few lenders cannot fill the gap overnight," said CML director general Michael Coogan, as lending criteria were shown to have tightened further.
Last week the Building Societies Association warned that first-time buyers will not be helped by the last Bank of England base rate cut, as it will discourage savers and therefore restrict the availability of credit.
Published 12th March, 2009
© 2009 Estates IT Limited
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First-time buyers continue to struggle to enter the property market, new statistics have revealed.