Conditions 'are easing for first-time buyers'

Despite the Council of Mortgage Lenders CML reporting a drop in the percentage of first-time buyers FTBs taking out mortgages, one expert believes conditions are improving for new entrants to the market.

Earlier this week, the CML revealed that FTBs accounted for the smallest percentage of new mortgage approvals since September 2007 during April.

However, Ray Boulger, senior technical manager at John Charcol, said that it is now "slightly easier" for them to access the housing market, with cheaper mortgages available.

"If you compare the availability of higher loan-to-value mortgages LTV – 80 to 90 per cent LTV– with where we were six months ago, it is significantly better and the pricing is better," he stated.

And Mr Boulger added that a "modest" increase in mortgage approvals could be expected in June's figures as a result of the Budget announcement to increase the stamp duty threshold to £250,000 for first-time buyers.

"There is no question, it is still difficult for first-time buyers, but I do think that one has to be very careful to not interpret too much from a single month's figures," he said.

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2010-06-17 13:43:49 © Moneyextra.com