Mortgage market improving for first time buyers
A wider selection of mortgages is now available to first time buyers with a small deposit, according to moneysupermarket.com
The price comparison site found buyers with a deposit of 15% have 22% more mortgages to choose from compared to December 2009.
Buyers with a deposit of just 10% can choose from an 11% larger range of mortgages compared to December.
In addition, the average interest rate on mortgages has fallen.
Hannah Mercedes Skenfield, moneysupermarket.com spokesperson, said the increasing number of mortgages available to buyers with small deposits represents a significant change in the attitude of lenders.
“Although there are only nine products available at 95 per cent LTV, the average rate has fallen by 0.71 per cent since October,” she added.
Chris Eagle of Creditchoices.co.uk added that the larger selection of mortgages will give more first-time buyers the opportunity to get on the property ladder.