Many first-time buyers 'still unable to get on property ladder'

Posted: 28 Jan 2010 10:19:15 GMT

Despite the increased availability of 85 per cent loan-to-value (LTV) mortgages, many first-time buyers are still unable to get a foot on to the property ladder, it has been suggested.

Paul Holmes, chief executive of Firstrung, says that while the fact that lenders are loosening their borrowing requirements does help, there are still not many first-time buyers who have a 15 per cent deposit to offer.

His comments come in response to statistics from moneysupermarket.com, which reveal that the number of 85 per cent LTV mortgages on the market has increased by 22 per cent since December 2009.

"A lot of first-time buyers whether singularly or together are still miles away in terms of multiples, as well as the deposit," explains Mr Holmes.

Recent data from the National Association of Estate Agents could make grim reading for some first-time buyers, revealing that only 19 per cent of people who purchased a property in December 2009 fell into this category.

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