First-time buyers will ‘reap rewards’ of mortgage problems
The reduction in the amount of mortgage products available to house buyers could greatly benefit first-time buyers, it has been suggested.
A spokesman for Firstrung contradicted a statement released by the Royal Institution of Chartered Surveyors (Rics) by claiming the problems in the mortgage market will actually help first-time buyers.
According to Paul Holmes, operations director of Firstrung, house prices are likely to fall following the removal of 60 per cent of mortgage products.
This will be a positive development for first-time buyers, he stated.
Mr Holmes predicted: "The cheap and readily available credit has gone, so there's only one place for house prices to go and that's to fall quite dramatically."
However, Rics stated last week that first-time buyers will find it harder to secure a mortgage as lenders tighten their belts and credit becomes increasingly hard to come by.
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