First-time buyers (FTBs) hoping to access the property market in the UK are being hampered in their efforts by the re-adoption of old mortgage criteria, it has been suggested.
Paul Holmes, chief executive officer at Firstrung – which specialises in delivering FTB solutions – noted brokers are once again going through proposals with a fine tooth comb in order to uncover the amount of debt would-be house buyers are in.
Mr Holmes stated: “They are looking in far more detail as to their payment profiles, what their job security is and how long they have been in their job.”
The ability of people to secure a suitable mortgage is therefore being restricted with lenders unwilling to put pen to paper on arrangements that carry elements of risk.
Mr Holmes observed the situation is currently akin to that seen in the 1980s, with home loan access forming the largest barrier for FTBs looking to get their foot on the first rung of the housing ladder.
Despite this, the expert noted house prices have remained resilient of late, with these costs returning to the pre-recession highs seen in 2008.
