First-time buyers 'face mixed prospects in mortgages market'

Posted: 07 Dec 2011 12:03:22 GMT

Many first-time buyers may continue to experience difficulty entering the mortgage market in 2012.

Many individuals hoping to take their first step onto the property ladder during the next 12 months may find there are few mortgages to suit their needs, it has been suggested.

Selwyn Lim, director of online market information website Mouseprice, claimed first-time buyers could face tough times ahead despite the introduction of new incentives.

His comments were made after SmartNewHomes predicted new home prices will experience nominal growth of two to three per cent over the next 12 months.

The company predicted that first-time buyers will enjoy more involvement in the housing sector in 2012 as a direct result of assistance from the government.

However, Mr Lim argued such initiatives have limited validity during the current financial crisis due to the negative impact another recession could have on the economy.

"If things go dreadfully in the eurozone then that will have a negative effect on the UK economy and, also, there is speculation that lending rates will increase," he added.  

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