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First time buyers still face difficult market

Thursday 13th August 2009

First-time buyers looking for a mortgage to get themselves onto the property ladder are still finding that they need a large deposit in order to do so.

Peter Cowell, broker at Click n Go Mortgages, said that first-time buyers who are not looking at shared ownership or equity options are having a "very difficult" time finding a deal without large sums to put down as a deposit .

However, awareness of shared ownership schemes is increasing, which could help those taking their first steps onto the mortgage market, and lenders are slowly beginning to realise that there is a need for such initiatives.

Mr Cowell said: "It is much more in the public agenda and people are understanding and being aware that there is a very good alternative for them. The increase in enquiries in that field is very big - it gets greater and greater all the time."

Recent research by Moneyfacts showed that the loan-to-value ratios of mortgages currently on the market are 17 per cent higher than they were two years ago.