A Third of All First Time Buyers Struggle With Mortgage
Published: 4th May 2017
Despite the best efforts of the government and lenders alike, a recent study carried out by Nottingham Building Society has found that a third of first-time buyers are still being denied mortgages, which ultimately led to the sale not going through.
This is despite over half of the applicants having more than 10% of the purchase price and 17% of applicants had deposits of less than 20%. Only 18% said their deposit was less than 10%.
According to figures from the council of mortgages 338,900 mortgages were completed last year, with a total lending value of £53.2billion, which is a record high. The average loan-to-value is around 84.3% on loans of £132,400.
Ian Gibbons, the Senior Mortgage Broking Manager at Nottingham Mortgage Services said that ultimately the size of deposit should not affect a first time buyers ability to get a mortgage.
“Borrowers with small deposits have a wide choice of loans to pick from but clearly many are struggling to buy the houses they want with so many potential deals falling through.
It is particularly worrying that borrowers with a 10% deposit or more are struggling. They should be able to secure a mortgage and not have to miss out on house purchases simply because their deposit is too small.”
Liddys have processed thousands of transactions, and aided hundreds of first time buyers in securing their first home. Our advice is to always speak to a professional and shop around for the best deal.
Every lender has their own criteria that they judge clients by, based on things like the size of the loan, the size of the deposit, your employment status etc. one lender may see you as their worst nightmare, for others you may be a perfect fit.
Mortgage advisors can also be incredibly valuable, and will help you determine which particular mortgage suits you best.
If you are buying or selling your home in Wakefield, Barnsley, Leeds or West Yorkshire in general then Liddy’s can help. Contact our conveyancing team on 01924 366 896.