FTBs to feel lending benefits 'in two years'

Posted: 20 Jul 2011 12:00:09 GMT

The advantages of an ease in lending conditions will not be felt immediately by FTBs, it has been claimed.

First-time buyers (FTBs) are unlikely to feel the benefit of an ease in lending conditions straight away, but should see the advantages of such action in around two years' time.

This is the opinion of Andy Pratt, chief operating officer at Alexander Hall, who explained a big impact will only be seen when the high street banks begin to open up above 90 per cent loan-to-value rates.

The industry figure noted people who considered buying a home two years ago have found they have been able to save their cash over this time.

He observed people are "creeping up" to that point, but added: "It is not as easy to save in these tough times when inflation is still relatively high and the cost of ... food and clothing have been quite high."

His comments come after recent research from Defaqto showed that between the beginning of April and the end of June this year, 8,968 mortgages were either launched or updated in the UK.
 

© Houseladder Ltd