Shared mortgages could be popular as lending cutbacks continue

02-Feb-2010

Would-be first-time buyers (FTBs) may have to wait a little longer before mortgages become more freely available, if the Association of Mortgage Intermediaries (AMI) is to be believed.

The association predicted in its first quarterly economic bulletin of 2010 that further contractions in GDP will occur and that financial institutions will continue to be reluctant to lend.

FTBs could be amongst those that are least likely to be able to secure a home loan while the period of economic turbulence continues.

Robert Sinclair, director of AMI, said: "The mortgage market will continue to face significant challenges in 2010. The shortage of housing and the continued low level of mortgage funding will continue to constrain the level of activity in the market."

Other options - such as a shared mortgage or a shared equity deal, where FTBs own part of a house as a way of getting on the first rung of the property ladder - may come under consideration for many.

Nationwide last week suggested that a lack of available housing could pose another problem for FTBs - rising house prices.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

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