First-time buyers missed out on cheap homes 'due to lack of mortgages'

Posted: 13 Jan 2010 12:19:44 GMT

Many first-time buyers in the UK were unable to take advantage of cheap house prices and the stamp duty holiday because they were unable to secure a mortgage, one property expert states.

Jonathan Moore, director of easyroommate.co.uk, says that the situation can only get worse for people who are hoping to get a foot on the property ladder as home values are now rising, the stamp duty holiday is over and therefore bigger mortgages are required.

"We are yet to see lenders consistently offer first-time buyers realistic loan-to-value mortgages at cheap enough rates," he suggests.

In another blow to first-time buyers, recent figures from the Department of Communities and Local Government revealed that house prices for this group of purchasers rose six times as fast than they did for other buyers.

They were faced with an increase of 3.9 per cent, compared to a national figure of 0.7 per cent.

Helen Adams, managing director of FirstRungNow, recently stated that without financial assistance from parents it is "very difficult" for many first-time buyers to purchase a home.

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