Two years before mortgage criteria returns to normal

Wed, 20 Jul 2011

It could be two years before first-time buyer mortgage customers see an easing of lending conditions, according to one independent mortgage advice firm.

According to Alexander Hall, criteria are beginning to relax, but it will be some time before the impact is seen in the market.

Chief operating officer Andy Pratt explained that conditions are gradually improving for first-time buyer mortgage customers, but lenders are still asking for larger deposits than they were before the recession .

"You get the slight drop in what people need for a deposit, but then only when the high street banks start to really open up above 90 per cent [loan-to-value] lending, will it make a big impact," he said.

The comments come in the same week that new Defaqto research showed that almost 9,000 mortgage products were either launched or updated in the three months to the end of June, with around 600 home loans offers being withdrawn.

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