First time buyer mortgage candidates are finding that rates are going even higher this week, thanks to the announcements of several top banks. Despite frequent calls from government officials to drop interest rates, banks are refusing and first time buyer mortgage candidates are being hit very hard by the increasing costs. Add in the fact that these banks are now offering much lower LTV ratios for first time buyer mortgages and you definitely have a problem that is not going anywhere anytime soon. Many fear that the trouble in the first time buyer mortgage market is going to continue for the next several years and few wonder if the end is in sight. With the latest news, it appears as though first time buyer mortgage candidates may want to wait to purchase their new homes.Melanie Bien, director at mortgage broker Savills Private Finance, said: “Abbey and Woolwich have already raised rates this week. Other lenders are likely to follow suit, making mortgages even more expensive for those remortgaging or buying a new home. Unfortunately, until confidence returns to the money markets, the cost of borrowing is likely to remain high.”
Related reading: First Time Buyer Mortgage
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