Abacus Daily Debt News

Mortgage finance ‘less accessible’ to first-time buyers

Loans for first-time buyers are harder to come by, despite improvements in the lending market, an industry expert has said.

According to Nicholas Leeming, director of propertyfinder.com, the fact that more money from creditors is being transferred to home buyers is "positive news [that] is not shared universally" and first-time property owners are "still getting a very raw deal".

He added that, although this demographic is integral to the recovery of the housing market, only those already on the property ladder are feeling the effects of the improvements thus far.

Despite an expected rise in transaction levels in the near future, obstacles to a full revival still remain, Mr Leeming said - including a shortage of properties being put up for sale.

His comments follow a recent report from the Council of Mortgage Lenders, which revealed that home loans approvals had increased by 19 per cent in July on the same month in 2008, which Mr Leeming noted was "encouraging".

By Sarah Adie