Shelter: FTBs want tougher lending rules

A study has revealed that despite a desire for cheap mortgages, the vast majority of first-time buyers think banks need to lend more responsibly.

The research by Shelter revealed that 84 per cent of first-time buyers think that lenders should only offer mortgages to those who can prove they can afford it, even if it means that some people will be unable to get a home loan.

Additionally, 53 per cent believe that it is the high cost of homes rather than the unavailability of cheap mortgages which is the biggest challenge to getting a step on the property ladder.

"What is most striking is the level of support amongst first-time buyers who clearly want greater protection and are well aware it might limit their chances of getting mortgage credit in the future," said Campbell Robb, chief executive of Shelter.

Phil Cliff, director of Santander Mortgages, said that the Shelter survey highlights the importance of supporting first-time buyers, especially in the current market.

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2011-05-26 13:59:09 © Moneyextra.com