Home Buyers: Don’t Be Dismayed
Those who want to purchase a home in the near future for the first time may be dismayed from the copious news reports and discussions about the recent tightening policies of mortgage providers. Since December 2007, eleven mortgage providers have reduced their maximum loan amounts, according to Moneyfacts.co.uk research.
However, Moneyfacts.co.uk says first time buyers should continue in their plans to purchase a home, although they may need larger deposits or guarantees from a third party than they would have needed before.
According to Darren Cook, Moneyfacts.co.uk head of mortgages, this requirement can protect first time buyers from over committing in a home purchase. Furthermore, he argues that first time buyers may even benefit from the current economic climate. He says, “I think lenders are still supporting first-time buyers, they’re possibly just being a little bit more prudent in how they advance their funds.”