Britons wrongly gripped by mortgage negativity

18-Feb-2009

Some prospective first-time buyers (FTBs) could be delaying efforts to purchase a property because they wrongly assume they will not be able to borrow a sufficient loan, according to a financial advice website.

According to David Elms, chief executive of Unbiased.co.uk, Britons have become confused about their mortgage options and are gripped by the doom and gloom associated with the recession.

Research by the company showed that around a quarter of people think they would not be allowed to borrow a mortgage worth more than 2.5 times their salary, while nine per cent felt they would need a deposit of at least 40 per cent to secure their first property.

"In reality, whilst the lending criteria we have seen applied over the last few years are a thing of the past, there may well be options available to people looking to take out a new mortgage," Mr Elms said.

His comments come after Richard Hair, past president of the National Association of Estate Agents, said FTBs put down a typical deposit of 22 per cent in December. He added that there have been signs of mortgage lenders easing their lending criteria of late.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

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