Loans - Difficulties For First-timers
By David Collins

For many, getting a foot on the first rung of the property ladder can be a long and frustrating process. With the credit crunch in full swing, first-time buyers are facing difficult times as housing markets around the world are feeling the pinch.

According to figures released by the Council of Mortgage Lenders (CML) - the number of home loans that are granted to first-time buyers has fallen by 8 percent, compared to figures from this time last year.

As a result of insecurities in the housing market, many lenders are now increasingly strict about their lending conditions, particularly for services such as secured loans. Such loans are an essential part of financing any move, and with a shortage of affordable deals on the market, many are turning to brokers in order to find the deal that suits them.

As well as toughening requirements, lenders are also demanding higher deposits - with the average deposit currently standing, in some cases, at 22 percent. This
slight increase has meant that first-time buyers are facing more of an uphill struggle to find the finances needed to secure their first property - in some cases having to borrow an average of over three times their salary.

With house prices fluctuating as a result of the credit crunch, buyers and lenders are feeling the pinch as they try to make ends meet.
Coupled with rising costs of food and fuel, many are struggling to find the funds to secure potential moves in the future. As a result, the mortgage market has seen a steady decline of consumer demand, with many first-time buyers unable to afford the rising cost of deposits.

The tempting step for first-time buyers, in the absence of affordable loans, is to grin and bear it during these difficult times. With house prices continuing to rise, affecting properties at home and abroad, many are choosing to rent rather than take the steps to purchase a property.

Looking for loans Compare a wide variety of personal loans and secured loans to find a deal that suits you.