Creative solutions for hard-pressed first-timers

Mortgage lenders are getting increasingly creative about how they lend to first-time buyers, according to one expert.

Many innovative mortgages have come onto the market in response to the demands of first-time buyers which are tailored to their exact needs.

Products such as 100 per cent mortgages, graduate mortgages and interest only mortgages are all now offered by lenders and are aimed at first-time buyers.

Helen Adams, from advice service FirstRungNow, says: "In the last year or so, mortgage lenders have been quite creative and they are coming up with new, innovative mortgages to help first-time buyers.

"But, of course, there is a price to be paid for these new products."

She added that many of these schemes are based on shared equity and shared ownership ideas which aim to allow more first-time buyers to find property affordable.

"The only trouble with shared equity is that they still have to be earning quite a lot of money in some parts of the country to be able to afford 75 per cent of the property, so it's quite expensive but I do think they're good schemes," said Ms Adams.


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