Increase in FTBs seeking cheap mortgages

The number of first-time buyers looking for cheap mortgages in order to get on the property ladder has reached its highest level for 12 months.

A study by Rightmove revealed that over 26 per cent looking to purchase in April were first-time buyers, an increase from 22.8 per cent in January and the highest level since quarter two 2010.

It found that 33 per cent of those first-time buyers quizzed said they are keen to get on the property ladder before house prices increase, causing them to miss out on cheap mortgages.

Miles Shipside, director of Rightmove, said: "This is perhaps driven by their sense that the deals on ¬properties to buy and mortgage-funding criteria are not going to improve and so more have simply accepted these conditions and decided to act."

A recent study by Santander revealed that a quarter of first-time buyers take a second job in order build up a deposit to get access to cheap mortgages.

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2011-05-09 13:32:42 © Moneyextra.com