First-time buyers 'could benefit from lower loan-to-value mortgages'
First-time buyers could soon find it easier to make their first steps onto the property ladder, according to new figures.
Price comparison site moneysupermarket.com found that the number of 85% loan to value deals on the market have risen 22% since December 2009. This means that there are now over 350 mortgage products available to those with a 15% deposit.
Paul Holmes, chief executive officer of Firstrung, said that the lower deposits will "undeniably" help more first-time buyers "as the deposit level is a lot more attractive than coming up with 25 to 40%".
"It would be interesting to know what the rates are because they really have to be around [the] 5% mark to be competitive. They [also] need to check that there are no hidden charges in terms of upfront fees," he said.
Mr Holmes believes that the major difficulty being faced by first-time buyers at the moment is finding and keeping a suitable job.
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