FTBs 'still having trouble obtaining a mortgage'

Posted: 02 Mar 2011 11:59:56 GMT

FTBs are finding times difficult despite increased affordability, it has been claimed.

First time buyers (FTBs) are still finding the going tough despite the affordability of property beginning to improve, it has been suggested.

Helen Adams, managing director of FirtsRungNow.com, noted that the ratio of house price to salary is more favourable than it has been of late.

However, the industry expert observed: "That doesn't take away from the fact that despite properties coming down in price, first-time buyers still can't get mortgages very easily from lenders."

She explained FTBs first taking out a mortgage need to be aware that any interest rate rise could cause their monthly home loan repayments to escalate.

Individuals are likely to be a little more cautious as a result of any hikes, Ms Adams claimed, adding lenders will be able to advise on what the implications of the increases would be.

Her comments come after Halifax recently reported that homes in Britain are becoming more affordable as a consequence of a general fall in house prices.
 

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