Fewer mortgage deals for first time buyers are now available.

There are now fewer first time mortgage deals on offer, which is bad news for both first time buyers and second steppers.

If first time buyers cannot gain access to affordable mortgage deals, then they are not able to purchase property from a second stepper which could allow them to move up the property ladder.

The inability of first timers to afford property and second steppers to move will affect the wider market as a whole.

Despite an increase in cheaper funding to banks and building societies, first time buyers are still being affected by reduced availability of high LTV products.

According to recent research the number of smaller deposit mortgage deals has fallen in the last 12 months by over 25%.

The number of 10% deposit mortgage products on available fell by 26% during 2011 and since the beginning of 2012 the number of 5% deposit mortgage deals has fallen by a massive 43%.

The sorts of mortgages specifically offered to first time buyers has also fallen. From 1,786 first time buyer deals being available in 2011 there are now 1,225 available in 2012, which is a 43% reduction.

Some mortgage providers such as the Cambridge, Nottingham, Ipswich and Skipton building societies have not helped this situation as they have withdrawn their 95% mortgage offers completely.

If you are looking for a first time mortgage achieving an offer without help can be hard. Funding for Lending may have been launched to make cheaper funding available to lenders, however little of this has so far filtered through to first time buyers.

Call Deal Direct for advice or a small deposit mortgage offer.

Contact an adviser today.