First-time buyers likely to struggle 'for next two years'

Potential homeowners looking for cheap mortgages have been advised that first-time-buyer activity in the housing market is unlikely to return to pre-recession levels for at least two years.

Selwyn Lim, director of Mouseprice, said that many people are currently unable to gain access to high loan-to-value mortgages, a fact that continues to hamper people taking their first step on the housing ladder.

He added that while 95 or even 100 per cent mortgages were common prior to the recession, now those seeking cheap mortgages are lucky to obtain 90 per cent.

"Until that changes, we are not going to see the level of first-time-buyer activity return to what it was. It will take a while. I think we are at least a couple of years away from that," he said.

The comments come despite figures from Halifax revealing that the number of homes affordable for first-time buyers has hit its highest level since 2003.

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2011-08-09 17:08:15 © Moneyextra.com