WARRINGTON North MP Charlotte Nichols has written to the Secretary of State for Housing to ask what action he will be taking to reopen the 90+% LTV market for first time buyers.
Charlotte took the action after it was revealed a number of High Street lenders have chosen to stop offering 90% loan to value (LTV) mortgages to first time buyers, including Accord Mortgages, Clydesdale Bank and Virgin Money.
As of 10 June only HSBC were continuing to offer this product, while Nationwide offer 95% LTV direct to consumers but not through mortgage brokers.
Other lenders have cited excess demand for withdrawing these mortgages.
Charlotte said:“First time buyers are being left stranded from accessing the housing market. According to Moneyfacts, the total number of mortgage products on the market has fallen 51% since the start of March.
As a recent first time buyer myself, and having purchased my home with a 95% LTV mortgage, I know only too well what a devastating blow this will be for young people in particular – many of whom will have been patiently saving for years only to see the dream of home ownership move even further out of reach.
“At the same time, Buy To Let mortgages are booming and taking advantage of the fall in house prices. This furthers the distortion in our housing market and makes it yet harder for young people to get their feet on the first rung of the housing ladder.
“The Government must be proactive in ensuring that the banks assist first time buyers rather than wealthy landlords to access homes on the market. Too many young people are losing life opportunities to the Covid-19 pandemic, and this must not be another instance of that.
“I have written to the Secretary of State for Housing to ask what measures will be taken to support first time buyers.”
