Lenders urged to offer competitive rates

26-Feb-2009

Mortgage lenders need to offer better rates to prospective first-time buyers with smaller deposits to bring in revenue from this type of property purchaser, according to money advice website Moneyfacts.

According to Michelle Slade, an analyst at the firm, homebuyers who cannot afford at least a 25 per cent deposit in the current market are likely to face a high premium on their first-time buyer mortgage.

She welcomed Northern Rock's expected return to the 90 per cent loan-to-value mortgage market, commenting: "Let's hope the nationalised lender sets an example to the rest of the market, offering rates to encourage lending at this end of the market once more."

Her comments come after house prices in the UK have fallen 17.6 per cent over the last 12 months, according to figures published today by Nationwide.

Property is now becoming more affordable and interest rate cuts have also boosted the level of new buyer enquiries, said Fionnuala Earley, chief economist at the building society.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

Parents stepping in to help first-time buyersSome lenders 'loosening their criteria for FTBs'Britons wrongly gripped by mortgage negativity

2012: May | Apr | Mar | Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar