Tight lending climate to affect homebuyers
Published: 22-Jan-2008
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The current tightening of mortgage lending could prove problematic for first-time buyers, it has been claimed.
Financial website Moneyfacts reported recently that several UK lenders have reduced the amount they are willing to lend.
The site found that since last December, 11 mortgage lenders have reduced their maximum loan-to-value (LTV) on many products, with some no longer offering 100 per cent mortages.
Simon Rubinsohn, senior economist at the Royal Institution of Chartered Surveyors (Rics), commented: "The tougher lending environment is likely to be particularly problematic for first-time buyers."
The difficulties of getting on the property ladder could mean that potential first-time buyers increasingly opt for rental accommodation instead, spelling good news for those with buy-to-let mortgages
Mortgage approval levels fell to a three year low in November 2007,according to recent research from the Halifax Bank and Nationwide Building society.
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