UK mortgage market favours wealthy

20 May 2011

The UK mortgage industry is still giving the best rates to wealthy borrowers, implying that the market remains effectively closed to most first-time home buyers.

On average, the best deals offered by lenders to typical first-time home buyers are of “very poor value.”

There is also the prevalent problem of lenders providing “eye-catching” rates that offer limited supply.

“Lenders are also now openly talking about favouring lending to cash-rich buy-to-let investors, rather than to first-time buyers. It’s likely that this situation is going to continue for a while yet,” said PricedOut spokesperson Matt Griffith.

E.serv, one of the largest providers of housing valuation services in the UK, revealed that more first-time home buyers mounted the real estate ladder in April, as a result of gradually slackening lending requirements.

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