Lenders 'still scared' to provide FTB cash

Posted: 16 Nov 2009 10:25:56 GMT

Financial service providers are still scared to lend money to first-time buyers (FTB), it has been suggested.

Helen Adams, managing director of FTB guidance company FirstRungNow.com, said that lenders are generally only handing over loans to inaugural property buyers who have large deposits.

However, she added that recent figures published by the Council of Mortgage Lenders (CML) do indicate that the housing market is recovering.

CML data showed that one-third of FTBs escaped paying stamp duty in September due to the property tax threshold being raised to £175,000.

It revealed that there were 6,200 FTB loans granted for property purchases between the old threshold of £125,000 and £175,000. There were a total of 19,700 loans dished out to first-timers in September.

Despite these encouraging figures, Ms Adams said it "remains extremely difficult" for FTBs to buy property and the ones who do typically have help from their parents.


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