First-time Mortgage Seekers " may Have To Pay More Than Other Borrowers"
First-time buyers may find it more expensive to borrow than other people.
People seeking the opportunity to get their first foot on the home credit ladder by securing a mortgage deal are likely to face a tougher task than those in the same situation a few years ago.
That is according to Catherine Hearnden, director of MyMortgageDirect, who has said that although the rates being charged to homebuyers for products such as tracker mortgages are not extraordinarily high, the global economic downturn has had a big effect on the fluidity of the market.
However, she added that this may not actually be a negative factor for the sector, as an era of more careful lending might be required for the country's wider economy to recover fully from the recession.
"It is more difficult to get a mortgage, but when you look at how easy money was, it is not a bad thing that it is a bit more difficult," Ms Hearnden explained.
The MyMortgageDirect official went on to state that a compromise needs to be found as the pre-recession trend of financiers lending too easily to borrowers without a large deposit could endanger the revival.
She also suggested the possibility of introducing a different way of credit scoring for first-time buyers without a history of such large financial commitments in order to make sure they can afford the repayments on their package.
Ms Hearnden's comments came after the publication of figures by the Daily Telegraph last Saturday (October 2nd), which stated that those gaining a mortgage for the first time are being charged up to 2,000 more on an annual basis than other borrowers.
According to the report, this discrepancy has only arisen over the last three years, as prior to that these people were able to borrow at the same rate as everyone else.
Meanwhile, the Chartered Institute of Housing said last month that the "golden age" of home ownership is now coming to an end.
People seeking the opportunity to get their first foot on the home credit ladder by securing a mortgage deal are likely to face a tougher task than those in the same situation a few years ago.
That is according to Catherine Hearnden, director of MyMortgageDirect, who has said that although the rates being charged to homebuyers for products such as tracker mortgages are not extraordinarily high, the global economic downturn has had a big effect on the fluidity of the market.
However, she added that this may not actually be a negative factor for the sector, as an era of more careful lending might be required for the country's wider economy to recover fully from the recession.
"It is more difficult to get a mortgage, but when you look at how easy money was, it is not a bad thing that it is a bit more difficult," Ms Hearnden explained.
The MyMortgageDirect official went on to state that a compromise needs to be found as the pre-recession trend of financiers lending too easily to borrowers without a large deposit could endanger the revival.
She also suggested the possibility of introducing a different way of credit scoring for first-time buyers without a history of such large financial commitments in order to make sure they can afford the repayments on their package.
Ms Hearnden's comments came after the publication of figures by the Daily Telegraph last Saturday (October 2nd), which stated that those gaining a mortgage for the first time are being charged up to 2,000 more on an annual basis than other borrowers.
According to the report, this discrepancy has only arisen over the last three years, as prior to that these people were able to borrow at the same rate as everyone else.
Meanwhile, the Chartered Institute of Housing said last month that the "golden age" of home ownership is now coming to an end.
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