90% loan-to-value mortgages 'hard to get approved'

08-Jul-2010

Published by Joshua Scott

First-time buyer mortgages may still be difficult to access despite the appearance of higher loan-to-value lending, according to an industry commentator.

Ray Boulger, senior technical manager at market consultants John Charcol, suggests individuals seeking these house purchase loans - though they are aimed at first-time buyers - could find providers reluctant to approve applications.

Rejections for loans at 90 per cent of the value of a property have a much higher rate than those for mortgages worth 75 per cent of the cost, he notes.

Joint ownership could help first-rung hopefuls join the market, as two buyers may give providers lending confidence.

"By definition, first-time buyers obviously won't have had a mortgage before and they may not have had much in the way of borrowing and that is a problem," comments the housing expert.

In mid-June, the Council of Mortgage Lenders reported first-time buyers made up the lowest proportion of house purchase loans since September 2007.

At FirstRungNow you can find out all about first time buyer mortgages as well as seek first time buyer advice.

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