From 11th August 2008 on ProblemSolved, front page news in Metro today.
A report on the BBC website today, suggested that mortgages are getting cheaper as providers attempt to inject some life back in to the listless housing market. The report stated that "the average rate charged by lenders on a new two-year deal, for someone with a 25% deposit, was 6.36%. That was down from an eight-year high of 6.6% in June."
Great news on the face of it - but if you think about what this actually means for a first time buyer, it shows that lenders are significantly more mouth than trousers. The average loan in the UK is £155,000; to raise a 25% deposit, you'd need £38,000. Now I don't have any hard and fast data to back this up but I'm willing to stick my neck out and guess that the majority of twentysomethings who are 3 years into their jobs and £12-16k in debt don't have that kind of money stuffed under their mattress.
A 5% deposit of £9,000 might be slightly more realistic - so I thought I'd check Money Supermarket for what the rate would be on that:
Unfortunately there are no products available based on the criteria you have entered into the mortgage comparison tool.
I rest my case...
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