Prospects may brighten for first-time buyers

Posted 2008-02-8

Many first-time buyers may be relieved to hear that many lenders are still willing to work with borrowers to get them on the housing ladder to homeownership. Although home buyers are likely to face more stringent lending criteria than before, it is “not all doom and gloom”.
The current economic climate may actually benefit first-time buyers, says Moneyfacts.co.uk.
Although larger deposits, or guarantees are often required from a third party, this may serve as a safety net for first-time buyers.
Darren Cook, head of mortgages at Moneyfacts.co.uk, noted that the added steps in the home buying process can protect buyers from over committing themselves on a home purchase.
In addition to the tightened lending practices, first-time home buyers may also find lower prices on in certain areas where home prices have stymied or been driven down in the wake of the housing crisis.
Since December of last year, eleven mortgage providers have put new limits on their maximum loan amounts, according to Moneyfacts.co.uk.
“I think lenders are still supporting first-time buyers, they’re possibly just being a little bit more prudent in how they advance their funds,” Mr. Cook said.

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