Lending squeeze ‘could protect’ first-time buyers

Posted 2008-02-8

Tighter lending controls could end up helping out first-time buyers, according to one financial website.
Moneyfacts.co.uk says those looking to buy a home for the first time could end up benefiting from the current economic climate.
Bigger deposits or third party guarantees could now be needed for first-time buyers to get on the ladder.However, according to Darren Cook, head of mortgages at Moneyfacts.co.uk, this could end up helping to prevent them from over-committing themselves when buying.

He said: “I think lenders are still supporting first-time buyers, they’re possibly just being a little bit more prudent in how they advance their funds.”

Since December 2007 11 mortgage providers have slashed the amount of their maximum loans, say figures released by Moneyfacts.co.uk.

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