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Lenders Focus on First Time Buyers
Mortgage lenders are becoming increasingly keen
to stimulate the first time buyer market, mainly because of the
stagnant state of the remortgage and home mover market. Getting
new buyers onto the property ladder is quite a difficult task,
and lenders are coming up with various innovations in mortgage
products to try and achieve this.
One of the main problems that first time buyers face is raising
the necessary deposit, and there are some lenders that are lowering
the amount of deposit required. Another issue that is being tackled
is getting enough of a mortgage to cover the purchase price, in
cases where the buyer does not have a sufficient income to be
accepted for the needed mortgage, the savings of the parents can
be used to offset the difference or even act as guarantor for
up to 25% of the mortgage.
Extended repayment terms are another offering being used to stimulate
the market, with terms as long as forty years now available from
certain lenders. This can greatly reduce the monthly repayments
when compared to a regular twenty-five year mortgage, and could
make the difference between an affordable purchase, and a house
being out of reach.
An active first time buyer segment filters up throughout the
entire market, and it is this that the various mortgage lenders
are hoping to achieve through the introduction of new products
for those looking to get onto the property ladder.
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