First, Alliance & Leicester decided to withdraw its Mortgage Plus product, possibly due to the fact that nobody ever qualified for it. In turn, Abbey and Coventry scrapped their 100% LTV deals.
Then Northern Rock withdrew its Together range, which for many brokers had been a lifeline product that enabled them to help first-time buyers to get a foot on the property ladder while covering their moving costs.
BM Solutions followed suit. Thanks to the industry’s headless chicken moment, we’ve ended up with fewer products aimed at helping first-time buyers on the market.
As if we did not have enough to worry about already, we are now put-ting the squeeze on the most important part of the housing market – first-time buyers.
They are the foundation of the market and have been shaky for the past four years. Now we’ve made things even worse.
I hope there are plenty of understanding parents who are willing and able to help their children because they are now first-timers’ only hope.
AMH Mortgage Consultants