First time buyer mortgage requirements get tougher.

With the launch of the Government's Mortgage Indemnity Scheme it was hoped that property purchase would get easier for first time buyers.

With the recent launch of a NewBuy product by Santander for 95 per cent LTV, five lenders in total now offer low deposit mortgage deals. However the news is not all good as elsewhere in the market some lenders have started to restrict access to first time buyer 5 per cent deposit deals.

This is a blow to both first time buyers and the property market as a whole as without green shoots development how can the property market hope to recover?

According to e.surv's April Mortgage Monitor, first time buyers are being hardest hit by the recent tightening of lending conditions, as lenders have started to restrict access to 95 per cent LTV deals. According to recent figures mortgages for first timers dropped to their lowest level for the last nine months, a situation also not helped by the end of the stamp duty concession a month earlier.

Mortgages for first time buyer property worth on average £125,000, fell in April by 5 per cent from the number of mortgages approved in March. Banks have blamed this reduction in lending on funding cost increases and renewed fears over the eurozone crisis.  Overall mortgages approved for house purchase fell 1.4 per cent in April from March levels.

Figures reveal that banks seem to be lending disproportionately to more well off buyers which reflects their desire to reduce lending to riskier first time or lower income buyers.

Whatever your circumstance if you are looking for a competitively priced mortgage contact Deal Direct.