Getting a mortgage still a struggle for first time buyers
August 18, 2010
Officials from a leading mortgage broker have said that many first time buyers in the UK are still struggling enormously when it comes to getting a mortgage loan. Industry experts from John Charcol have said that most first time buyers are still finding it a real struggle to get a mortgage loan and to afford a mortgage, which means that the dream of homeownership is still out of reach.
One senior official from the company, Ray Boulger, said that the main obstacle that was hindering first time buyers when it came to being able to afford a mortgage was the size of the deposit that lenders were asking them to put down. He said that the deposit levels that were being asked for were out of the reach of many first time buyers, as lenders have really increased the amount of deposit that they are looking for from tenants.
He also said that things for first time buyers were far harder than they were for home movers, as those that were just moving already had property often with equity in it that can be used for a deposit but first time buyers do not have this luxury and have to rely on savings or family to try and pay the deposit required be lenders require.
Boulger said that market conditions are still extremely difficult for first time buyers, and this backed up another recent report from the Chartered Institute of Housing, which claimed that homeownership was out of reach for many people in the current climate.
One would be buyer said:”Trying to find the deposit that most lenders are looking for has been impossible, so trying to get onto the property ladder will have to remain a dream for me for the moment.”
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