Stricter mortgage rules 'backed by FTBs'

Posted: 26 May 2011 11:53:17 GMT

Many FTBs are backing plans for tougher mortgage rules, it has been found.

Stricter mortgage rules are being backed by the majority of first-time buyers (FTBs), new research has revealed.

The survey by Shelter found that 75 per cent of FTBs believe banks must lend responsibly - despite this meaning they may not be able to afford a home loan.

According to the investigation, 79 per cent of those surveyed think banks and building societies lent irresponsibly prior to the recession, with 38 per cent claiming institutions cannot be trusted to improve their ways in the future.

Chief executive of Shelter Campbell Rob said: "This survey shows people really want simple, common sense rules in place to ensure people borrow money responsibly."

He noted FTBs clearly want greater protection with regard their home loan, as they are aware that this could limit their chances of obtaining mortgage credit in years to come.

Matt Griffith, spokesman for PricedOut, recently stated FTBs currently saving for a deposit may be rewarded with falling house prices in the future.
 

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