Mortgage Market Affected By Financial Climate

First-time buyers took out loans which were 88 per cent of the property''s value in January, compared to 90 per cent in December and January 2007, according to a new report.

Research from the Council of Mortgage Lenders (CML) has also shown that people moving house borrowed 70 per cent of the property''s value which was down from 73 per cent in December and 72 per cent in January 2007.

Michael Coogan, CML director general, said: "The wholesale funding markets remain largely closed and Mortgage funding still remains constrained. This is now having a discernible impact on lending criteria and the ability of first-time buyers to get into the housing market."

He added that the budget tomorrow represents a perfect opportunity for the government to help out first-time buyers by raising the stamp duty threshold.

In related news a UK house builder, Bovis Homes, has called for the Bank of England to cut mortgage rates.

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