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Perhaps in denial and still merry from our mulled wine, there was still some part of us that hoped at 12:01 am on 1st January that Ashton Kutcher would emerge from obscurity and say "You've Been Punk'd" and covid-19 would vanish without a trace. However, being physically impossible and probably even too 2020 for 2020, it never happened and we're left feeling distinctively sooo last year. 

We bet first-time buyers are feeling a little deflated at the moment too, for 2020 not only took away most of their liberties but also nearly all of the 90% mortgages, meaning the 10% deposit that takes years to save could no longer be enough to own a home. Unfortunately, there are still Lenders unwilling to lend to those with a 10% deposit in early 2021. 

In fact, a recent study from MoneyFacts showed that there were 779 90% mortgage deals in March last year in stark contrast to the 160 available now. With the furlough scheme, job losses and uncertainty in the property market, many Lenders have tightened their requirements on mortgage approvals, making it even harder for first-time buyers to get onto the property ladder. These tighter restrictions could be things like increasing the minimum credit score and annual salary needed. 

It has always been the case that those who have a bigger deposit get access to a wider range of deals and better mortgage rates due to a lower Loan-to-Value ratio. To Lenders, these are seen as less risky mortgages as they're not putting as much of their money on the line. However, with the current generation of first-time buyers paying an average of 8 x their annual salary for a house, it really is easier said than done to save more than the standard 10%. 

So, what do first-time buyers do, stop their search, save for a few more years or opt for a cheaper property? 

The very first thing you should do as a first-time buyer is speak to a Mortgage Broker who can assess your situation, don't rely on the news or online mortgage calculators to determine what you can and can't afford. As Mortgage Brokers in Liverpool, Wirral and Southport, we offer free advice and will look at everything from your credit history, income, outgoings and future plans to see what property you could afford and will check the market for deals to match your situation. 

Call the Right Click Finance team today on 0151 734 6777 to speak to a Mortgage Broker.