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Secured Loans > First-time house buyers struggle to secure mortgages

First-time house buyers struggle to secure mortgages

23rd September 2016 | Published by Evolution Money

Times are getting tougher for first-time buyers looking to secure a high-value mortgage and  get their first foot on the property ladder.

That’s because the total number of high-value mortgages has fallen for two consecutive months between July and September. It effectively means that mortgages which require a minimum deposit of 5% are currently fewer than they have been at any other point of 2016.

In fact, high-value loans with 5pc deposits now account for just 2.5pc of overall lending, which is quite a drop considering that figure stood at 4.2pc in the second quarter of 2014.

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Mapping the mortgage landscape

But while the availability of high-value mortgages has shrunk, it is also worth noting that they are the only type of mortgage to do so. Elsewhere in the market, the number of mortgages that require a larger deposit amount (anything from 10pc) has actually steadily risen since January.

Experts within the housing market consider it to be another side effect of the Brexit vote, whereby lender appetite to take on the greater risk of a 5pc deposit has naturally declined in a time of economic uncertainty. It is this lack of appetite that seems to be preventing first-time buyers from staking their first claim in the housing market.

It is also thought that the drop in first-time buyers will have a further knock-on effect by preventing established homeowners from moving further up the property ladder.

 

Evolution Money is a non-LTV lender offering secured loans from £1,000 – £20,000 to clients with zero or restricted equity and mortgage arrears. Read more about our loan service and how we can help you today.

Category: Homepage, Money
This post was written by Evolution Money
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Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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