Old mortgage conditions harming FTB chances
The chances of first-time buyers (FTBs) being able to enter the
property market are being harmed by the fact that many lenders are
now returning to the more harsh conditions around paying for a
mortgage that were seen in the past.
In the past 30 years, it has been easier for people to get
mortgages because lenders would send off the request to an
underwriter who would approve it in minutes.
However, Paul Holmes, chief executive officer at Firstrung, said
that lenders are now scrutinising every detail and making it harder
for those looking to borrow, checking out debt statistics and
employment details among other aspects of their eligibility.
"The whole ability to get a mortgage has been completely
transformed back to the 1980s standard. That is the biggest
barrier," he added.
According to a report last week from MoneySupermarket, conditions
are now so tough that the average age at which people think they
will be able to afford to buy has hit 37.