First time buyers could benefit from economic climate
Mortgage lenders are becoming more stringent in terms of lending criteria, but not necessarily to the detriment of first-time buyers. In fact first time buyers could benefit from the current economic climate.
According to Moneyfacts.co.uk larger deposits or third party guarantees are now needed by first time buyers. As such, this may stop them from over committing themselves in a home purchase. Darren Cook, head of mortgages at Moneyfacts.co.uk said:”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,” Mr Cook said.
Since December last year 11 mortgage lenders have reduced the provision of maximum loans.