10-year low in lending may be cause for concern for FTBs

18-Feb-2010

The difficulty of the task facing would-be first-time buyers (FTBs) may have been illustrated by the latest mortgage figures, which show lending for residential purchases decreased in January.

According to the Council for Mortgage Lenders (CML), overall lending fell to £9.1 billion - a 32 per cent decrease from the £13.4 billion recorded in December.

Although a decline is expected in the traditionally slow post-Christmas market, FTBs could be concerned that lending is now harder to secure than at any time since 2000.

CML economist Paul Samter said: "We remain in a period of uncertainty for the housing market and economy at large. More recent developments have been influenced by the end of the stamp duty holiday."

He goes on to add that those already with mortgages are likely to be "cushioned" from the worst of the situation as banks are expected to keep interest rates low, but the prospects for those looking to reach the first rung of the ladder may be a little bleaker.

Another barrier FTBs must overcome is rising house prices, with recent Nationwide figures showing the value of property is 8.6 per cent up on a year ago.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

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