Combined mortgage and personal loan product 'aids first time buyers'

20-Aug-2007

The overwhelming majority of brokers believe a combined mortgage and personal loan product would be beneficial to first time buyers struggling to climb onto the first rung of the property ladder, it has been revealed.

A survey by Alliance & Leicester found that 73 per cent of brokers polled consider the product in question to be most beneficial to first time buyers, while 54 per cent believe that combined 100 per cent plus loan-to-value (LTV) mortgage and personal loans should also be targeted at the group.

According to Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, this information is especially relevant as first time buyers are currently in need of assistance.

"When innovative products come onto the market, it's important they actually fill a gap and help those who need it most," he said.

"Rising interest rates and house prices means first time buyers need flexible products that will help them get onto the housing ladder."

The reason for the relevance of 100 per cent plus LTV mortgages to first time buyers is that it allows them to spend the extra money raised on improving their home, 21 per cent of brokers say.

A further 22 per cent cite the product as important for the group as it facilitates a faster property purchase - enabling first time buyers to take advantage of house prices rises.

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