Tighter mortgage lending criteria means that first-time buyers need to save up a larger deposit than in the past - but this is "no bad thing", according to the Council of Mortgage Lenders.
First-time property buyers who are required to save up a larger deposit than people purchasing before the credit crunch will see a number of benefits, it has been claimed.
The credit crunch - which started in the US sub-prime mortgage market according to some, including Gordon Brown - has left many lenders wary of providing mortgages. This has led to them tightening their criteria, which means first-time buyers need to leave a bigger deposit.
According to the latest figures from the CML, there were 40,000 home loans approved in October last year - less than half the figure measured during the same month in 2007.
But this is "no bad thing" in many ways, the head of member and external relations at the Council of Mortgage Lenders (CML) has said. Sue Anderson explained that this situation "helps to protect them, as well as their lender, against further house price falls". First-time buyers are already showing more interest in the market than before, according to a number of reports, mainly due to the cheaper cost of property.
However, Ms Anderson added: "On the other hand, it does mean that they may have to wait a bit longer before they can access mortgage finance if they haven't already got substantial savings accumulated."
