For consumers with first time buyer mortgages, the current state of the economy has created quite a problem as gas, food and other expenses continue to skyrocket. The result has been a tightening on restrictions from banks that offer first time buyer mortgages, making it difficult for new home buyers to get a loan. There has been a gradual decrease in the amount of first time buyer mortgages as a direct result of the housing crisis, as many consider whether or not now is the time to get their new homes.Melanie Bien, director of mortgage broker Savills Private Finance, said that “Lenders are moving away from riskier customers who tend to have high loan to value.” Ms Bien added: “First time buyers tend to have smaller deposits and have not benefited from years of house price rises.” she said. “Unless they have parents who can help, they are stuck.”Neil Cameron, savings manager at Sainsbury’s Finance said, “Those people saving for a deposit on a property should review any savings account they are using for this and make sure that they have one that pays a consistently attractive rate that does not penalise you for withdrawing your money should you need to.”
Related reading: First Time Buyer Mortgage
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