Mortgage market 'opening up'

Wednesday, 10, Mar 2010 04:45

More confidence in the property market is leading to increased flexibility among mortgage lenders, according to an expert.

First-time buyers could find higher loan-to-values being offered, said Ben Wilkie, editor of What Mortgage.

Bigger banks are likely to be the ones opening up their finances, he suggested, as they want to get back into the property market to boost their profile.

"It really should help first-time buyers, because even to get a ten per cent deposit is hard enough and to get any higher than that is outrageous, for many people," he commented.

For first-time buyers really struggling to save money, the expert predicted a 95 per cent loan-to-value mortgage could be on offer "fairly soon".

Figures from Moneyfacts have revealed that 1,798 mortgage deals were on offer at the beginning of March requiring deposits of up to 40 per cent, up more than six per cent on the previous month.