Low deposits prove market has bottomed out

by Christopher Evans

Lower deposits than mortgage lenders are currently offering will provide a clear signal that the property market is improving, first-time buyer services firm Firstrung has said.

Chief executive of the company Paul Holmes commented: "The best time to do it [get on the housing ladder] is probably just as lenders are starting to offer mortgage deals with sensible levels of deposit."

This is because lenders will be acting on the "best market intelligence bar none", meaning they will be aware when they should change their lending strategy.

At the point when ten per cent deposits are normal, it will be safe to say the first-time buyer market has bottomed out, Mr Holmes suggested.

Figures produced this month by Halifax indicated that homes had reached their most affordable level since January 2003.

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Published on: May 11, 2009

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