Lenders 'more prudent' according to National Homebuyers

First-time buyers and prospective remortgagers could find it increasingly difficult to secure a mortgage as providers become more careful about who they lend to.

[ClickPress, Mon Feb 18 2008] Darren Cook, head of mortgages at Moneyfacts, said that for many mortgage providers the credit crunch has been a "big wake up call".

"It looks like [lenders] are starting get slightly jittery at the prospect of house price falls - which is not too good for first-time buyers, who have to raise the capital [to cover] that five per cent in order to purchase property," he said.

"You'll probably find that lenders are going to be all the more prudent in their appetite to lend."

According to research from the finance site, 11 lenders have cut their maximum loan-to-value offering since December 2007.

"It's not all doom and gloom for first-time buyers, it's just that in the current mortgage market, they're not sure what's going to happen so they're being a bit prudent," Mr Cook added.

Julian King of National Homebuyers adds, "The market already suffers from the inability or unwillingness of first time buyers to climb onto the first rung.

"Homesellers are therefore hit with a lack of people willing to buy their home, and therefore a sizeable difference between asking price and sale price.

"Homeowners looking for a quick sale are encouraged to seek reputable buyers away from the open market".

Mr King is a director of National Homebuyers, the UK's leading quick home sale firm, guaranteeing a fast property sale for vendors who need a quick sale. Mr King is also a founder of APBA, the Approved Property Buyers Association which is calling for government regulation for the Quick Property Sale and Sell and Rent Back industries.

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