The biggest obstacle to obtaining a mortgage is raising a deposit, it has been claimed.
Paul Broadhead, head of mortgage policy at the Building Societies Association, explained: “The size of the deposit that they need to raise is a barrier to them getting on the housing ladder.”
The industry figure noted people are concerned about a number of factors when it comes to their finances at present, including the wider economy, employment levels and activity in the labour market.
He observed that while there are still hurdles to overcome in order for individuals to access the mortgage market, “things are being done” to try and improve the situation.
Indeed, the government is making progress in this regard by providing guarantees for higher loan-to-value lending, with new-build properties targeted in particular.
As a result, Mr Broadhead noted spring may see people obtaining mortgages for these living spaces with deposits of five per cent rather than the usual ten or 15 per cent.
His comments come after Barclays recently reported that cheap home loan deals from lenders last year resulted in homeowners facing the most affordable monthly mortgage payments for a decade.
