Buyers 'can't afford mortgage rates'

News Category: Industry News

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Many house hunters cannot afford to get on to the property ladder because of current loan-to-value mortgage rates, according to Click n go Mortgages.

Hayley Martin, team leader at the mortgage advisory company, said a typical home available via an estate agent is currently priced about £150,000.

But on a loan-to-value rate of 90 per cent or less, buyers have to afford a deposit of at least £15,000 - which is pricing many people off the property ladder, she said.

This is happening despite recent interest rate cuts helping to lower mortgage rates on the market.

"It's only if you've got a really large deposit or a lot of equity in your home that you can take advantage of the low rates," Ms Martin commented.

Mortgage lending fell by 47 per cent between December 2007 and last month, according to figures published by the Council of Mortgage Lenders today.

As the financial climate continues to ebb on would-be buyers' finances, letting agents and landlords could benefit as more Britons turn to more affordable renting options instead.

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