Criteria tighten on first time buyer mortgage deals.
Lenders are once again tightening criteria for mortgage deals offered to first time buyers.
A recent report from e.surv shows that the approval level for mortgage deals for first time buyers has fallen to its lowest level in 9 months. After the end of the stamp duty holiday in March, first time property buyer mortgage approvals dropped back for April as lenders pulled back on lending to buyers with small deposits.
The explanation of this drop in mortgage approval is once again being attributed by lenders to increased funding costs and concern over the eurozone crisis.
Even those lenders who signed up to the NewBuy scheme and pledged to do their bit for the first time buyer sector have increased their rates.
The Bank of England previously predicted lenders would pull back on high LTV lending over the summer. As this prediction appears to be coming true the recommendation is for low deposit borrowers to get a move on and source a deal soon.
Lenders have released some worthwhile 95 per cent mortgage deals and with the Halifax and Santander recently signing up to the NewBuy scheme offering rates at around 5 per cent, there are deals to be had for those who act without delay.
Contact Deal Direct now and we will compare all of the most competitive mortgage deals on offer that suit your circumstances. We will access each deal and suggest the one whose criteria you most readily fit.
For competitive mortgage rates speak to one of our impartial advisers today.
