Mortgage market 'becoming increasingly tough'

News Category: Industry News

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With first-time buyers facing increasing difficulties in getting onto the property ladder, buy-to-let landlords could potentially benefit from higher rental demand.

According to Darren Cook, head of mortgages for Moneyfacts, the mortgage market is becoming less and less accommodating for first-time buyers, with incentives being "few and far between".

He said that while the market remains competitive, it is less so than it was a few months ago, meaning that consumers have to shop around more to find a good deal on a loan for house purchase.

Mr Cook commented: "If you take six or seven months ago, [the mortgage market] was very competitive: the banks were going out to find business. Now, the consumers [need to] find a bank that's prepared to lend to them. That's why the product numbers have dropped."

The toughening conditions in the mortgage market could lead many prospective homebuyers to put off their property purchase, choosing to rent in the meantime.

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