Lenders forcing first-time buyers out |
25 2008 |
| First-time buyers are being squeezed out of the property market by the actions of desperate mortgage lenders, it has been claimed today (June 24th). The average cost of borrowing has risen steadily since December despite three base rate cuts, with a 0.11 per cent rise in the past week alone for the average two-year fixed-rate product on offer from Britain's ten biggest lenders. Now leading price comparison website Moneysupermarket.com has responded to the latest set of depressing figures by explaining the root cause of the problems. Louise Cuming, head of mortgages, said: "The mortgage industry should bear much of the blame for the stagnation of the housing market as lenders have distorted the landscape significantly over the past 12 months. "Lenders have done a complete U-turn in respect of the risk they are prepared to take when lending, which is specifically affecting borrowers with little or no deposit or equity. "This in turn directly affects first-time buyers, who are the absolute lifeblood of the housing industry." The number of mortgage products on the market has decreased from around 30,000 in August 2007 to just 5,000 today.  |
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