Banks 'should increase mortgage lending for FTBs'
2nd Oct 2012
Banks across the UK should be looking to increase their lending capabilities as a way of ensuring that more first-time buyers can get onto the UK property ladder.
This is the claim of Dominik Lipnicki, director at Your Mortgage Decisions, who said that it is the case that first timers coming into the market are essential, because they represent the starting point of the market, and they are essential to keeping it as fluid as possible.
Centre for Economics and Business Research (Cebr) on behalf of HSBC said earlier this week (October 1st) that the bank of mum and dad had helped 100,000 people get onto the property ladder where they would not have been able to in the past.
However, Mr Lipnicki claimed that banks have a responsibility to help more young people in particular take their first step onto the ladder.
"Lenders must however look at offering deals to existing borrowers, both for purchase as well as remortgage, to really make a difference.
"We are still faced with many clients stuck in their current home or mortgage scheme, unable to remortgage or buy their dream property as lenders simply ignore their plight, happy to make money from often uncompetitive standard variable rates."
Posted by Staff Writer: Frances McDonald
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