First-time buyers to be 'last people to benefit'

First-time buyers looking for the best mortgage rates are likely to be the "last people to benefit" from a rise in mortgage lending, global real estate company Savills has said.

Lucian Cook, director of residential research at the company, said that the requirement of large mortgage deposit requirements mean that first-time buyers are currently missing out on the "affordability advantage" that those on the housing market possess.

He said: "Currently they require big deposits and, generally when you have that big deposit, mortgage finance comes at a premium."

Mr Cook added that first-time buyers don't have the affordability advantage that people already on the property ladder would have if they were to compare owning against renting.

The comments from Savills follow the release of figures from the Bank of England which show that the number of mortgage approvals in the UK increased slightly in November to 45,000, but this is still below the 61,000 figure recorded in November 2009.
 

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2010-12-22 13:32:27 © Moneyextra.com