Mortgage rates 'out of reach' for FTBs
The average interest rate on a mortgage for a first-time buyer (FTB) has reached a seven-and-a-half year high, it has emerged.
While many first-time buyers find themselves unable to take out a mortgage at all - relying solely on rental property instead - those who can secure a home loan now face an average mortgage rate of 6.55 per cent.
That compares with 6.42 per cent just one month ago and marks the highest level since August 2000, when the base rate of borrowing was a full 75 base points above the current level at six per cent.
Analysts say the tightened lending criteria reflect worsening conditions in the wider mortgage market, with first-time buyers being singled out as one of the first casualties of the credit crunch.
Global financial markets have been in turmoil since the US sub-prime crash last autumn, which left financial institutions increasingly risk averse and so less willing to lend to newcomers to the property market.
Recent research also showed that average loan-to-value (LTV) ratios are falling, meaning prospective homeowners are having to find ever larger deposits before being considered for a mortgage.
Published 14th March, 2008
© 2008 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
St John's Wood brings the village atmosphere to the capital
St John’s Wood is a great location for people looking to capitalise on all the benefits of London living without being caught up in all the hustle and bustle.
Read Article ... Published on 26th May, 2015
Yeading: Enjoy peaceful city living in an up-and-coming area
Yeading is a laid-back and peaceful residential area situated north-east of Hayes and is one of the most up-and-coming areas of the capital.
Read Article ... Published on 26th May, 2015
Hanwell: A green, peaceful environment for Londoners
Hanwell is a small town located in the Borough of Ealing and is in between Ealing and Southall, providing excellent transport links to the rest of the capital.
Read Article ... Published on 26th May, 2015
Mitcham Carnival announced for June
Mitcham Carnival has been announced for Saturday June 13th at Three Kings Piece.
Read Article ... Published on 22nd May, 2015
Hammersmith and Fulham Council start Park consultation
Hammersmith and Fulham Council have launched a new consultation on Hammersmith Park, inviting local residents to have their say on the area and how it can be improved.
Read Article ... Published on 22nd May, 2015
New conservation areas planned around Waltham Forest
Waltham Forest has announced plans for two new conservation areas near Lloyd Park and Bakers Arms town centre.
Read Article ... Published on 20th May, 2015
Sutton Council announces Take Part Take Pride summer festival
Sutton Council has announced its Take Part Take Pride summer festival.
Read Article ... Published on 20th May, 2015
Brent Council teams with Brent Housing Partnership in new project
Brent Council has partnered with the Brent Housing Partnership as it aims to improve the standard of housing for local people.
Read Article ... Published on 19th May, 2015
Gardeners prepare for Islington In Bloom
Islington Council is preparing for this year’s “In Bloom” event by teaming up with local gardeners to identify the best greenery available in the area.
Read Article ... Published on 15th May, 2015
New fitness centre set to open in Manor Park
A new fitness centre is expected to be opened in Manor Park by Newham Council.
Read Article ... Published on 15th May, 2015
The average interest rate on a mortgage for a first-time buyer (FTB) has reached a seven-and-a-half year high, it has emerged.