First time buyers should not even consider seeking a mortgage without putting down a 25% deposit, says Moneysupermarket.com's mortgage expert, Louise Cuming.
Despite the Chancellor asking mortgage lenders to continue providing cheap loans to households, most are still desperate to get rid of customers and consumers are faced with few choices, she adds. Cuming says first time buyers without a substantial deposit of at least 25% should bide their time and continue saving, as they will find it impossible to access competitive interest rates in the current market. Lenders have become increasingly wary of lending large proportions of a property’s value, as house price falls increase the risks of negative equity. With house prices down around 15% o...
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