First-time buyers will benefit from a pledge by HSBC to set aside funds for new mortgages aimed at that market, it has been stated.
The lender recently unveiled three new products set at 90 per cent loan-to-value, with £1 billion of funding allocated for this purpose.
Commenting on this, the managing director of first-time buyer services firm FirstRungNow.com, Helen Adams, noted: "Not long ago first-time buyers were having to come up with between 25 per cent and 30 per cent of the deposit, which was unrealistic for them."
As well as this being good news, she suggested, HSBC is likely to have launched the new products in the knowledge that others will unveil similar mortgages.
House price affordability is another factor that may encourage first-time buyers, with the latest Land Registry statistics revealing a 16.5 per cent drop in values in the 12 months to February 2009.
Published on: April 15, 2009