Affordability affecting first-time buyers

First time buyers are being hit by problems of affordability which limits how much mortgage lenders can help those trying to get on the property ladder, according to experts.

Bernard Clarke from the Council of Mortgage Lenders says that extending the terms of the loan or introducing things like guarantor mortgages can help first time buyers but at the moment there are limits to what lenders can do.

"When one sees affordability getting worse and worse over a number of yearsone does come up against limits to the extent that lenders can do things to remove the problem," said Mr Clarke.

He added that first-time buyers often have a range of different circumstances and that lenders are increasingly using affordability models to assess the ability of lenders to repay their loans so assessments are dovetailed to the individual.

Of course another thing first-time buyers could do if they cannot afford properties is to self-build. New research shows that every town in the UK had an average price of at least £100,000 and this is the first time this has happened in housing price history.


© Adfero Ltd