Top mortgage deals 'being phased out'
A decline in the amount of 100 per cent plus mortgage deals is a sign of the increasing difficulties facing first-time buyers, according to Moneyfacts.co.uk.
The site claimed that first-time buyers were still finding some support from lenders, but were coming up against new levels of prudence and a more narrow range of mortgage deals.
Since the beginning of December 2007, some 11 mortgage lenders have reduced the maximum loan-to-value offered across much of their mortgage range, claimed Moneyfacts.co.uk, a trend causing problems for many young property-seekers.
Darren Cook, head of mortgages at Moneyfacts.co.uk, said: "There were 121 100 per cent fixed rate mortgages at the end of January – that's just dropped down to 118, so there's no massive change there."
"You'll probably find that lenders are going to be all the more prudent in their appetite to lend… Over the whole mortgage market lenders have had a big wake up call with the credit crunch."
He added that many first-time buyers were calling on parents and guardians as guarantors in order to secure mortgage funding – with many young property-seekers likely to continue pursuing rental property if this option is not open to them.
"I think lenders are still supporting first-time buyers, they're possibly just being a little bit more prudent in how they advance their funds."
Published 6th February, 2008
© 2008 Estates IT Limited
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A decline in the amount of 100 per cent plus mortgage deals is a sign of the increasing difficulties facing first-time buyers, according to Moneyfacts.co.uk.