Some good news for FTBs

nollag2006

Looks like mortgage availability is finally starting to improve:
http://www.moneysavingexpert.com/new...n-90-mortgages

Could be just what is needed to jump start this frozen market

brit1234

I don't see why it is good news for first time buyers. The biggest hurdle is high house prices but thankfully falling.

I actually see an increase in 90% mortgages bad for first time buyers. As house prices are been suggested to be falling by 10% this year it would put any first time buyer into negative equity.

Also an average fixed rate of 5.87% is not good when base rates are 0.5%.

There are also signs of mortgages tightening with gift deposits being phased out and variations self certs going. All before the FSA MMR recommendations are implemented.

I say again first time buyers just want lower house prices and house prices are continuing to fall back to normal levels.

Carl31

This isn't good news, this means over priced houses are going to remain over priced and the economic recovery this country needs is going to be further stalled

People need to leave the market to fail, Bring house prices down and flush all that extra cash back into the economy.

I know its not what owners want to hear, but its whats needed

brit1234

When house prices are allowed to fall back to normal values first time buyers will be able to jump back on the market and restart the housing market. Then associated products such as kitchens, furnitire, electronic goods will increase boosting the economy. Deposits will be lower as well as banks won't have to worry about negative equity.

Keeping interest rates this low is just delaying the crash and recovery. It penalises savers leaving banks with less money to lend out in mortgages. It is also delaying those people who should of been repossessed being forced to sell and unblock the system. We have 100,000s of first time buyer homes owned by by landlord investors who are technically underwater yet being bailed out by low rates preventing them being sold cheaper to first time buyers.

However these low interest rates are preventing the crash just making it run more slowly. So I recommend all first time buyers keep saving those deposits and be patient, the crash continues.

Running_Horse

I'm guessing this is a house price discussion...for the house price forum?