Lending at 95% LTV is not the answer to the problems of a lack of first-time buyers in the market.
By lending at high LTVs and extended income multiples all it does is continue and exacerbate the real issue which is that prices for first-time buyers are too high.
First-time buyers are not a stand-alone issue, it is a part of the overall problem in the UK of not building enough housing and the debt-fuelled last decade that encouraged excess borrowing and drove prices to unrealistic levels.
The answer is to build more houses and let the pain unwind on house prices. Another drink at the bar doesn’t help.
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