First time home buyer news: More flexibility will help aspiring homeowners

13-Jun-2006

The best way to provide first time buyers with affordable homes is to offer flexibility in levels of mortgage debt, data from the Council of Mortgage Lenders (CML) shows.

House price inflation, increasing student debts and first time buyers needing to be more mobile are issues that must be taken into account, the CML states.

Bob Pannell, head of research at the mortgage council, said: "For today's young adults, mobility for career and other reasons is an important factor.

"While homeownership remains a long-term aspiration for the majority, the reality is that for many young people the combination of house prices and student debt is reinforcing a lifestyle choice in favour of renting."

The CML is keen to explore new ways of getting aspiring homeowners onto the first rung of the property ladder and has urged lenders and the government to work together to develop new, flexible ways of helping first time buyers.

As a platform for a more flexible approach, the Open Market Homebuy scheme, which sees lenders contribute to a shared equity loan, will be launched in October.

Bradford and Bingley has also recently launched a new mortgage aimed specifically at first time buyers who are still training or working in specific professions.

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