Those seeking a first time buyer mortgage are finding it increasingly difficult to find a bank willing to work with them. Rates are going up and even though housing prices are down, approvals for first time buyer mortgages are as well. One of the main problems affecting the first time buyer mortgage market is the fact that LTV ratios are dropping, which means higher down payments will be necessary. Home buyers that need a first time buyer mortgage are being encouraged to start saving now before they apply.
Rachel Thrussell, Head of Savings at Moneyfacts.co.uk, said: “Savers are one of the few groups to have benefited from the credit crunch, with rates at some of the highest levels that we have seen in recent years.
“With rates on fixed-rate bonds continuing to increase for the first time in many years, we have seen all of the top six Moneyfacts.co.uk best buy places being taken up by rates of over 7%. Fixed-rate investments are not suitable for everyone, but for anyone who doesn’t need access to their money for a period of between six months and five years, then rates as high as 7.10% can be found.”
Related reading: First Time Buyer Mortgage
Comment on this article