Promote high LTV deals to first-timers

5 July 2010

Recent indicators suggest house prices are stabilising and falls may even be on the cards.

The demise of Home Information Packs is probably the biggest factor here, as competition to sell property to a restricted audience is affecting prices.

As ever, the old equation of supply and demand is relevant and we are seeing more supply to meet a demand that remains stagnant.

On the other hand, competition in the mortgage market is becoming more intense at higher LTVs and hopefully this will encourage more activity and prevent price dips.

What we could do with is a television, newspaper or shop window marketing campaign from lenders advising the masses that 85% LTV to 90% LTV mortgages are available again.

I’m bored with seeing rates that require a 40% deposit touted as the lowest when many potential home owners are sitting in rented accommodation squirreling away their cash thinking that a 25% deposit is required.

I believe you reap what you sow so it would be fantastic if the government paid for these advertisements, or even ran its own to generate more Stamp Duty.

First-time buyers get a big tax break at present and not since the days of Mortgage Interest Relief at Source has it been such a good time to buy a first home.

I will happily walk the streets in a sandwich board to generate interest but I feel others could be doing more to help our industry.

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