According to mortgage market news, mortgage lenders in the UK are so risk averse that they are ignoring first-time buyers and instead only focusing on those borrowers that have a 25% deposit.

 

Michelle Slade of Moneyfacts was reported in mortgages news as saying: 'Two years ago, rate-driven competition led to 90% LTV deals being some of the most attractive rates on the market.Today, a 25% deposit remains the level where most lenders are willing to do business. Anything smaller than this and borrowers will pay a hefty price.'

 

Unfortunately, mortgage lenders are only seeking those customers that present a minimal risk. First-time are therefore in a position of being ignored. Meanwhile, mortgage lenders are making large profits by charging huge margins on the cost of funding.