First-timer buyers will accept a lower rate to get market access
First-time buyers are prepared to accept a mortgage deal which has
a lower rate as long as they can get access to the market,
according to an expert.
Paula John, editor-in-chief at Your Mortgage, said that the main
priority is taking that step and getting a foot on the ladder, even
if it means accepting a higher rate of interest.
She noted that the "biggest concern" for first-time buyers at the
moment is actually getting hold of a deal.
Ms John stated that a deposit of at least five per cent will be
needed, with many financial institutions requiring a sum of around
20 or 25 per cent.
"They will all demand squeaky clean credit records and then there
will be other criteria in place as well. It is very hard to access
finance if you are a first-time buyer because, in general, the
lending community hasn't got a massive appetite to be lending to
first-time buyers," she added.