First-time buyers 'to face difficulties'

Posted: 07 Jul 2010 11:43:48 GMT

First-time buyers may find it difficult to get higher loan-to-value (LTV) mortgages accepted, one expert has claimed.

Ray Boulger, senior technical manager at John Charcol - an independent UK mortgage adviser - noted those looking to get 90 per cent LTV face a difficult task due to their lack of credit history.

He added people who are seeking to attain 75 per cent LTV options have a much better chance of being successful.

Mr Boulger said: "First-time buyers obviously won't have had a mortgage before and they may not have had much in the way of borrowing and that is a problem."

The specialist continued he does not anticipate there being much of an improvement in the sector in the future, despite some lenders trying to loosen their criteria.

His comments come after the Council of Mortgage Lenders reported in June first-time buyers made up the lowest proportion of house purchase loans since September 2007, accounting for 35 per cent of all approvals.


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