FTBs 'not helped at all by low interest rates'

19-Jan-2010

Low interest rates are of no benefit to would-be first-time buyers (FTBs) hoping to secure a mortgage, a claim suggests.

According to MyMortgageDirect, although actually securing a home loan is more affordable, the increased amount of cash required as a deposit renders it largely irrelevant.

Speaking of the record-low rates, Catherine Hearnden, director at the site, said: "I don't think it is going to make any difference because the reason mortgages are more affordable is because they need a bigger deposit and [FTBs] haven't got a bigger deposit."

She urged the government to initiate more schemes and incentivised plans to give FTBs more chance of getting on to the property ladder.

Those struggling to find the growing deposit needed to complete the purchase of a home may wish to turn to alternative methods - such as a shared mortgage or shared equity mortgage, which could offer a greater chance of success for people seeking their first home.

The Council for Mortgage Lenders last week suggested that the percentage of an average income required to meet mortgage repayments is at a five-year low.

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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