An increasing number of high loan-to-value mortgages coming on to the market could indicate a good time to purchase for first-time buyers (FTBs).
Paul Holmes, chief executive officer at Firstrung – a company specialising in providing FTB solutions – has noted such escalating availability can be a positive sign for those looking to get their foot on the first rung of the property ladder.
However, Mr Holmes said he does not know when this situation is likely to arise at present.
He was speaking after Santander revealed it is to offer a new range of NewBuy mortgages, which are being released via intermediaries with ties to Berkeley, Bovis Homes, Persimmon and Barratt Homes.
Mr Holmes observed signs that lenders are introducing 90 per cent or 100 per cent home loans suggest they know the sector has “bottomed out” and understand failure to change will mean they write no business at all.
He stated: “Once they start doing it en masse you will have reached a point where their intelligence is saying that we have reached the floor for the market.”