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Low deposit mortgage agreements very scarce

It has been revealed that a great number of mortgage providers in the UK are rejecting low deposit applications with some estimating as many as 90% of such applications are turned down. Despite the fact that the industry would like us to believe competition in the mortgage market is on the increase and first-time buyers are now coming back to the fore, it seems very much to be the opposite. So when will the market turn for first time buyers?

In all honesty we are unlikely to see any significant movement in the first-time buyer market until we see a significant improvement in the UK economy and the UK public sector. The risk of default in the short to medium term on low deposit mortgage arrangements is very difficult to justify and despite the fact the government is pushing for more liquidity in this particular area there is a need to be more "conservative" than reckless.

The UK mortgage arena has become very fragmented over the last few weeks with a great deal more liquidity away from the first-time buyer market. How long this will continue remains to be seen as first-time buyers are becoming more and more concerned about a reduction in opportunities to climb onto the housing ladder.

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