Deals for first time buyers start to fall

August 29, 2016 by Brendan O'Neill

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First time buyers may have been looking forward to snapping up some bargains on the property market following the predictions that house prices may fall as a result of Brexit, but they may find that they have fewer options when it comes to deals for first time buyers.

Although there are more deals available for 95% Loan To Value than this time in 2015, the number of deals available for those with a 5% deposit is falling. In March 2016, there were 270 deals available, while the number has fallen to 225 in August this year. The financial expert at Moneyfacts, Charlotte Nelson, said:

“It is particularly bruising when many hope that the predictions of cheaper houses would help them realise their dream sooner than expected, but unfortunately, a downturn in property prices can have a significant impact on the higher LTV mortgage sector.”

Nelson adds that lenders are wary of lending at higher levels when there is a risk that property prices could fall. In addition, the Help To Buy Mortgage Guarantee scheme will be ending later this year. This could have a negative impact on the number of deals available for those with a low deposit. However, the interest rates on fixed rate products for high LTV have fallen to some of their lowest levels, making a mortgage more affordable for first time buyers.

CeMAP qualified mortgage advisers are generally aware of the availability of products for first time buyers and know which lenders may be the most suitable choice for your circumstances.