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First-time buyer news
Banks 'still looking to help first-time buyers'
6 February, 2008
Mortgage lenders may be becoming "more prudent" but "it's not all doom and gloom for first-time buyers", one expert believes.
Darren Cook, head of mortgages at Moneyfacts.co.uk, said that even though some lenders were now "slightly jittery" at the prospect of house price falls and the credit crunch had given them "a big wake up call" they were still "supporting first-time buyers".
He said: "It's not all doom and gloom for first-time buyers, it's just that in the current mortgage market, [lenders are] not sure what's going to happen so they're being a bit prudent."
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Cook also believes that the tighter lending conditions should benefit both banks and lenders in the long-run as this meant that first-time buyers would not be over-committed when they took out their loan.
Research by Moneyfacts.co.uk found that since December 2007, 11 mortgage firms have reduced the maximum loan-to-value they offer on some or all of their products.
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