Earlier today I was looking at the Finance Markets Forum and one of their threads was all about the rosy days ahead for first time buyers, falling house prices and cheaper mortgages. So although the credit crunch has been nasty, there has been a positive correction in the favour of first time buyers, or has there?
It's weird because I read an article on Sunday 4th January 2010 in the Financial Mail that tells of the expected woes of First Time Buyers in the year ahead. The main thrust of the article was that although house prices are coming down (depending who you believe, where you live, relativity, etc.). There is still the matter of a 15% deposit and the stamp duty if you pay more than £125,000 for the property that need to be taken into consideration.
Who do you believe? The optimism of the flat statistics or the more real life version put forward by the Financial Mail? I am hoping that the truth lies somewhere between.
There are 90% mortgages available for first time buyers, the situation was improving at the end of last year, so let us hope that the tidings of joy from Mr Prestridge are a little premature and we continue to see more lenders offering higher LTV's in the next 12 months.
Hopefully the recovery continues and confidence returns to both lenders and employers. I personally believe this one is too close to call but I hope that first time buyers can access mortgages with higher loan to value ratios and attractive initial rates of interest.
It may not be the panacea the economy needs but it would be good to see any positive moves in the housing market, sooner rather than later.
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