Wary first-time buyers 'need mortgage solutions'

Posted: 07 Feb 2011 12:48:33 GMT

A head of consulting has suggested the industry needs to offer more solutions to keep the property ladder from remaining static.

The mortgage industry has got to find ways of helping first-time buyers, but consumers may be wary of new solutions, one expert has argued.

Timothy Lambert, head of consulting at Ducalian, warned if the sector does not assist those looking to get on the bottom rung of the property ladder, then it could remain static.

Whereas banks are offering some mortgages that last for 30 years instead of 25 - which helps make the payments more manageable - he noted people might not be so quick to snatch up lenders' products.

"Any solution always means more debt and surely people must be wary of that by now," Mr Lambert said.

He commented that many may see additional debt as unwise under the current circumstances – that future house prices are unclear and there are so many struggling to meet bill payments.

Earlier this month, head of communications at the Home Builders Federation Steve Turner claimed the government should be encouraging institutions to lend more money to first-time buyers, in order to make the most of mortgage availability.
 

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