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FTB products available double over three years


The number of mortgage products available to first-time buyers has risen to 2,776, double the number of products available in April 2012.

Research from MoneySuperMarket has shown that partly thanks to the governments help to buy scheme, there are double the number of first-time buyer products available today compared with April 2012. Also, mortgage rates have fallen to their lowest level in three years to 3.26%.

The average loan to value (LTV) required for first-time buyers has remained flat over the past three years at 79%, which means a first-time buyer would need a deposit of £31,500 to buy a £150,000 property. To combat this, the number of 95% LTV mortgages available to first-time buyers has risen dramatically over the last three years to 170. This is an increase of 448% as there were only 31 products available.

Kevin Mountford, head of banking at MoneySuperMarket, said:
“The increase in the number of first time buyer mortgages, and the corresponding fall in interest rates, can only mean good news for those looking to get a foot on the ladder. Even better, borrowers who can scrape together a 10 or even 15% deposit will find they are able to get their hands on more competitive deals. The introduction of the Government’s Help to Buy ISA which will see the Government provide up to £3,000 towards a first time buyer’s deposit, could also help prospective homeowners get themselves into a new LTV bracket, thus helping them secure a more competitive deal.

“Whilst mortgage approvals were up 7% overall on March, this doesn’t mean that lenders’ criteria is becoming more relaxed. After the introduction of the Mortgage Market Review, borrowers not only need to have a strong credit score, they also need to prove that they can afford the mortgage they’re applying for – not only at its current rate but, if rates should rise in the future.”

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