‘Not all doom and gloom’ for first-time buyers

Posted 2008-02-11

The housing market is not being closed to first-time buyers despite the ‘credit crunch’, say experts.
Darren Cook, head of mortgages at Moneyfacts.co.uk, said the outlook for those looking to buy a home for the first time is not as bleak as it appears.He said lenders are still offering appropriate loans to those wanting to make an initial investment despite well-publicised fresh credit controls.
He said: “It’s not all doom and gloom for first-time buyers, it’s just that in the current mortgage market, they are not sure what is going to happen so they are being a bit prudent.”

Moneyfacts research showed 11 mortgage lenders have reduced their maximum loan-to-value available on mortgage products since December last year.

Although there are less 100 per cent mortgages on the market, this is evidence of lender prudence rather than the closing off of the market to first-time buyers, Mr Cook added.

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