- Monday, 1 March 2010First-time house buyers need to commit to
debt management and revert back to the idea of saving for a deposit, it has been claimed.
Director of MyMortgageDirect Catherine Hearnden said in light of a fall in lending and a fragile economic recovery, first-time buyers need to do the groundwork.
"I think you must go back to the idea of saving for a deposit, and then I think people will take it more seriously," she said.
"A lot of lenders still require at least five per cent and I think that is important. Otherwise it is handed on a plate. If nothing is done by people themselves, they won't expect to have put the effort in when paying their mortgage."
Her comments follow the release of new figures from the British Bankers Association that reveal lending for mortgages by UK high street banks fell to a figure of 35,000 in January, down from 46,000 in December.
According to the Council of Mortgage Lenders, gross mortgage lending declined to an estimated £9.1 billion in January, a 32 per cent fall from £13.4 billion in December and a 21 per cent fall from £11.5 billion the same time last year.
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