FSA proposal would make it tougher to secure first mortgage, says expert

23-Mar-2010

Proposals by the Financial Services Authority (FSA) to restrict the number of home loans granted would be bad news for those seeking their first mortgage, says an expert.

Bernard Clarke, communications manager at the Council for Mortgage Lenders, believes such a move would be a "significant hurdle" for first-time buyers to overcome.

The FSA wants to implement a tightening on lending and a cap on the number of mortgages given out to prevent a boom and bust in the UK housing market.

But Mr Clarke states: "We don't favour credit control as it risks excluding some consumers, who would be denied … access to a mortgage even though they could sustain the commitment."

He adds people looking for a first mortgage are already faced with the problem of raising a deposit, so putting another obstacle in their way would be an unfair move.

According to recent research by Moneyfacts, there were 1,798 mortgage deals on the market at the beginning of March - up by 68 per cent on the corresponding period last year.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

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