First-time buyers ‘seeing LTVs rise’

The size of the deposit the average first-time buyer has to pay is falling, it has been noted.

Editor at buyer magazine What Mortgage Ben Wilkie stated that the loan-value (LTV) situation has been gradually getting better for those seeking mortgages over the summer months.

He stated: “There has been research saying that for first-time buyers, in the last three or fourth months, every month they have to come up with three per cent less deposit for their first home.”

Mr Wilkie added that while the 1.98 per cent deal offered by Woolwich is more likely to interest those remortgaging, eventually deals like this and the 1.99 per cent product recently introduced by HSBC will be available to first-timers at lower LTVs.

According to the Council of Mortgage Lenders, in July this year the average LTV of a first-time buyer was 75 per cent, unchanged from June.

However, the average income multiple required for a mortgage fell from 3.08 to 3.02.

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