| Deposit on first homes rise to 13 per cent |
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Mortgage lenders continue to turn the screw on first-time buyers as the average deposit rose to 13 per cent in April, figures showed yesterday. Down-payments on homes were at their highest level since November 2004 and up from 11 per cent in March as banks and building societies tightened their belts in the wake of the credit crunch. It is now almost imposible to get a 100 per cent mortgage, according to the Council of Mortgage Lenders. First-time buyers were lent an average of 3.3 times their home income in April, down from 3.35 times the previous month and the lowest level since November 2006. 'While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market,' said CML director general Michael Coogan. On a brighter note, statistics showed a slight increase in the number of people taking out mortgages to buy a home during April. About 50,700 loans worth £7.7billion were advanced for house purchase during the month - nine per cent more than in March. But numbers remain well down on those for April last year, when 80,000 people took out a new mortgage because they were moving house - with loans collectively worth £12billion. |
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