I was interested to see that Natwest have launched a new first time buyer mortgage – a 2 year fixed rate 90% loan to value product. This is a very welcome step in the right direction and ideally if we could just see perhaps 95% mortgages creeping in this would be enough to really kick start the property market.
A recent Halifax report indicates that while property prices are at their most affordable level for first time buyers since 2003, the number of first time buyers has dropped to 10% and continues to deteriorate. As I have mentioned in previous blogs, first time buyers are the life blood of the housing market and a healthy housing market requires the number of first time buyers to be 40% of all purchases. Again I call for both UK and Scottish Governments to take urgent action to assist first time buyers.Lindsay Darroch Head of Property