Will first-time buyers opt for renting in London due to LTV difficulties?
A home loans specialist has indicated that first-time buyers could have their work cut out to get higher loan-to-value mortgages because of debt criteria, something that may encourage more to rent property in London.
Ray Boulger, senior technical manager at broker John Charcol, suggested that those trying to borrow above 75 per cent face being turned down by lenders, as they can often lack a good credit score, which is in many cases down to not having any previous history to go on.
"I don't think we are going to see any significant improvement in the fortunes of first-time buyers any time soon," he added.
Another point that might interest first-time buyers contemplating whether to rent property in the London borough of Islington is a recent report by Zoopla, which found significant reservations among potential purchasers.
The survey revealed that 77 per cent of respondents believe mortgage restrictions could threaten a recovery in the housing market, while 25 per cent expressed concern a possible interest rate rise.
By Martyn Glynn
Published 7th July, 2010
© 2010 Estates IT Limited
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It may be that people consider trying to find property to rent in the London borough of Islington or around the UK an easier option, given that one mortgage expert said first-time buyers could struggle to get high loan-to-value deals.