Monday, September 13, 2010

First-time buyers need largest deposits since records began

First-time buyers hit new low amid house price fears

Mortgages granted to first-time buyers dropped to 19,400 from 19,700 in June and 20,100 a year earlier, the Council of Mortgage Lenders reported. Lending to FTBs in the three months to July rose by 8pc compared with the same period a year earlier, the slowest growth in almost a year. The average FTB deposit size was 24pc of the cost of a property, the same as in June but higher than the 21pc deposit required in the two months before that. The size of deposits compared with home value remains close to its largest since records began in 1979. With the Bank of England’s policy rate at a record low, interest rate costs are relatively subdued. First-time buyers’ interest takes up 13pc of income – the lowest since 2004. "The mortgage market remains dominated by the cash-rich."

Posted by drewster @ 07:12 PM (975 views)
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One thought on “First-time buyers need largest deposits since records began

  • The FT’s article on the same subject also mentions that: “reservations for newly built homes has recently hit an all-time low, according to the Home Builders Federation.” (Link: FT: Fall in lending fuels housing market fears)

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