Although they have weathered housing crises in the past compared to other types of mortgages, the decline in first-time buyer mortgage applications has seen its most significant decline in over 30 years. Most schools of thought lean towards the first-time consumer preferring to see what is happening in the market rather than jumping into it, and it has had a noticeable effect on the number of these first-time buyer mortgage applications.The Bank of England has introduced data that is predicting continued deterioration of purchasing transactions in the housing industry in the ensuing months. Michael Coogan, Director General of the CML, feels that there has been a slight improvement in the condition of the credit market based on the introduction of a special liquidity scheme. London Interbank Offered Rate, or Libor, seems to be moving in a helpful direction though it remains higher than the bank rate.No doubt it will take time for any improvements in the credit market condition to filter through to the mortgage market. This trend towards a decrease in the amount of these first-time buyer mortgage applications is expected to continue. Additionally, it is becoming more difficult for a lot of consumers to get loan approval right now which is a direct reflection of what banks have been doing to achieve those results.
Related reading: First Time Buyer Mortgage
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