FTBs struggle to find a mortgage

First time buyers (FTBs) are finding it more difficult to get an adverse credit mortgage but things may be about to pick up for them.

Following the global credit crunch, many lenders tightened their criteria, making it difficult for those with a poor credit rating to get a deal.

However, although the Council of Mortgage Lenders (CML) accepts that this is the case at present, it believes that an imminent cut to the base rate of interest will bring some relief to potential homebuyers.

"It will be more difficult for people to get adverse credit mortgages since lenders are tightening their criteria," said Sarah Robson, CML press officer.

"The general expectation at the moment is that there will be a reduction in interest rates next year. That will ease the pressure on some borrowers… It does give some borrowers hope.

"Our October 2008 housing market forecast was for base rates to fall to five per cent by mid 2008," she added.

The base rate of interest currently stands at a six-year high of 5.75 per cent.

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