3
Apr
More innovative mortgages needed
After the closing of the stamp duty holiday at the end of last
month (March 24th), it has been argued that it will now be harder
for first-time buyers to get on the property ladder, due to
prohibitive costs.
With some lenders such as Nationwide and the Halifax now offering
cashback for new buyers to help them out though, it has been
claimed that more innovative mortgages are needed to help boost the
market.
Andy Pratt, chief operating officer at Alexander Hall, said that it
is important that banks bring out products which are more enticing
to first timers so that they can come into the market and help
invigorate it.
"If there is no innovation in products that encourage first-time
buyers into the market, then it is a natural consequence that
people will probably think that they will wait until after the
summer and look again in September," he added, saying that even
though it is more expensive for banks to offer higher loan-to-value
products, it can turn out to be a vital move for property as a
whole.