24 Apr

Old mortgage conditions harming FTB chances

Old mortgage conditions harming FTB chances

The chances of first-time buyers (FTBs) being able to enter the property market are being harmed by the fact that many lenders are now returning to the more harsh conditions around paying for a mortgage that were seen in the past.

In the past 30 years, it has been easier for people to get mortgages because lenders would send off the request to an underwriter who would approve it in minutes.

However, Paul Holmes, chief executive officer at Firstrung, said that lenders are now scrutinising every detail and making it harder for those looking to borrow, checking out debt statistics and employment details among other aspects of their eligibility.

"The whole ability to get a mortgage has been completely transformed back to the 1980s standard. That is the biggest barrier," he added.

According to a report last week from MoneySupermarket, conditions are now so tough that the average age at which people think they will be able to afford to buy has hit 37.ADNFCR-1222-ID-801348273-ADNFCR

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