First-time buyers struggling despite mortgage affordability

First-time buyers looking to access the best mortgage rates are being hampered by the lack of mortgage availability, FirstRungNow.com has stated.

Comments from the first-time buyers website come after a report from Halifax showed that house price falls over recent years have seen improved affordability across Britain.

The survey found that £150,000 was enough to buy a secure semi-detached property in five out of the top ten British cities, compared to just one in 2007.

However, Helen Adams, managing director at FirstRungNow.com, said: "That doesn't take away from the fact that despite properties coming down in price, first-time buyers still can't get mortgages very easily from lenders."

She added that the predicted rise in interest rates is likely to make people more cautious about entering the housing market and taking advantage of the best mortgage rates on offer.

"They need to be aware that an interest rate rise can increase their mortgage payments every month," Ms Adams added.
 

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2011-03-02 13:24:16 © Moneyextra.com