First-timers to be kept locked out of 2013 mortgage market

Ben Southwood
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MORTGAGE lenders will focus their attention on the safer, low loan-to-value (LTV) end of the credit market during 2013, research showed yesterday.

Lenders will conserve their precious capital and boost their lending in the remortgage market, which will grow a quarter from around 310,000 transactions this year to almost 400,000 next year, according to data from LMS, a conveyancing firms.

Chief executive Andy Knee put this down to the Funding for Lending Scheme, which he said was lifting activity at the low LTV end of the market.

Amidst a difficult market for funds, and in the tough economic climate, prospective first-time buyers are forecasting that they will need even longer to raise a deposit, according to figures from the Building Societies Association.

Over a quarter of those who hope to buy their first property predict they will need 10 years or more to raise a deposit, versus just 26 per cent who say they need three years or less. By contrast, prior to the credit crunch under a third thought they would need more than three years.