15 Apr

Lending boost tipped to help first-time buyers

Lending boost tipped to help first-time buyers

First-time buyers will find it easier to get on the housing ladder now that 90 per cent loan-to-value (LTV) mortgages are returning, it has been suggested.

The managing director of first-time buyer services firm FirstRungNow.com, Helen Adams, commented that the move by HSBC to set aside £1 billion on such high LTV deals for first-time buyers represents a "positive" move.

She added: "Not long ago first-time buyers were having to come up with between 25 per cent and 30 per cent of the deposit, which was unrealistic."

Ms Adams stated that HSBC is likely to have made the move in the expectation that others will follow suit.

First-time buyers may also have been encouraged by recent improvements in affordability.

The Financial Times house price index for March - which was published yesterday - showed that the average home had dropped in value by 0.9 per cent since February, the 13th successive monthly fall.
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