Mortgages: how to get a loan as lenders pull up the ladder

First-time buyers face significant hurdles and high interest rates in their search for a home

Mortgage for average first-time property needs income of £37,096

First-time buyers work together to get their deposits

The Bank of England is preparing for another interest rate cut, which would put already historically low rates into negative territory. But for first-time buyers, the reverse is true and mortgage rates are rising. To make matters worse, some lenders have introduced restrictions against mortgages on flats as they worry about price falls.

Before the coronavirus pandemic struck, loans for first-time buyers were plentiful, with many banks willing to advance as much as 95% of the purchase price and the best deals carrying an interest rate of only 2.6% a year.

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from Property | The Guardian https://ift.tt/31CydMy
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