Apparently, first time buyers who have been struggling to save up money for a deposit now have more mortgages to choose from thanks to lenders finally allowing their loan-to-values to creep up.
Abbey is currently offering a four year fixed rate mortgage at 5.84%, available up to 85% loan-to-value (LTV) - the amount that can be borrowed relative to the cost of the property - with a fee of £495. HSBC, meanwhile, has increased its LTV from 60% to 75% on its tracker mortgage of 2.95% (tracks 2.45% over base).
(Source: Guardian)
This can only be a good sign, but I now believe it is still not the time to buy. I'm going to be holding my horses, probably until 2010 at least, by which time I will have saved up a more substantial deposit and I am predicting that is when house prices will be at the bottom of the trough. Let's see how that pans out... :)
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