CML offers lenders advice to help first time buyers

24-Apr-2007

The Council of Mortgage Lenders (CML) has suggested a number of ways that lenders can help first time buyers get on to the property ladder.

Affordability is often an issue for first time buyers, something that the CML suggests can be counteracted to some extent by measures that the lender can introduce to the first time buyer.

"There are some things that lenders can do to help with that problem [of affordability]; perhaps thinking about extending the term of the loan or introducing things like guarantor mortgages or ... mortgages that are discounted at the start of the term, which have long been a feature of the market in any case," said CML spokesperson Bernard Clarke.

However, he added that if affordability continues to grow as a problem, there may be little that lenders can do to provide a solution for first time buyers looking to get in to the property market.

Mr Clarke said that "one does come against limits" in that situation, despite attempting to "remove the problem".

Last week, research from Royal Bank of Scotland showed that many first time buyers look to the bank of mum and dad to help them get a foot on the property ladder.

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