First Time Buyer Mortgages Monday, 12th October 2009

More and more mortgage providersare backing away from the first-time buyers' market by simply demanding deposits in excess of 10% and often in excess of 30%, recent changes in UK mortgage sector have seen . Not only has this reduced liquidity in this sub-sector but it has also reduced competition for first-time buyers, a situation which will see the cost of mortgages rise higher and higher for the foreseeable future.

The UK property sector is central to the ongoing improvement in the UK economy and a setback in this particular area could have dire consequences for the UK economy as a whole.First-time buyers are the food and drink of the UK property sector and without their introduction in the short to medium term there will be difficulties.

Unless the government is able to lean on the UK banking sector, with particular emphasis on Lloyds bank and Royal Bank of Scotland, or introduce more taxpayer funded incentives, the flood of first-time buyers to the marketplace could dry up very soon. While the UK government has in the past promised help for first-time buyers to climb onto the property ladder, so far this particular rescue package has been very ineffective.