More first time buyer mortgages are needed.

The first time buyer mortgage situation has not greatly improved despite the release of cheaper funding through the funding for lending scheme.

It was hoped that now lenders have increased access to lower cost funding, more first time buyer mortgage deals would be released. The Government scheme has led to the release of lower rates. However few of the lower rate products are aimed at those with a smaller deposit.

Conditions for first time buyers are not rapidly improving, according to the RBS Ability to Buy index which uses the full range of costs which face first time buyers to access affordability. Inflation, National Insurance tax, average salaries, essential living expenses and house prices are all used.

House prices in the first time price bracket are falling however the positive effect is being outweighed by the rising cost of living.

However despite this a drop in property prices is helping first-time buyers, as it means that both the size of the deposit needed and monthly mortgage repayments are likely to get smaller.

It is estimated that for first timer buyers mortgage repayments take over half of their income. Those buying in London have been hardest hit. The RBS index has revealed that those buying in London need to save almost twice as long for a mortgage deposit as those living elsewhere in the UK.

Conditions are tough for those looking for a mortgage for their first property but there is hope for those who contact Deal Direct for a competitive quote.

Our skilled impartial advisers will carefully review your circumstances to find an affordable product tailored to your needs.

Contact Deal Direct today.