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First mortgage rate at 20-year low


Wednesday April 21st 2010

While many have turned to mortgage payment protection insurance as a way of easing the stresses of prohibitive property repayments, the pressures of owning a house have caused a large decline in the number of first-time buyers, research has shown.

A survey by marketing group GfK found that around 347,000 people took out a mortgage for the first time in the year to February 2010 - up slightly on 2008's figure but still well down on historical numbers.

The rate now stands close to a 20-year low, the company claimed, adding that fewer home loans were being taken out than during the darkest days of the 1990s recession.

Banks have only exacerbated the situation by demanding far higher deposits in the aftermath of the credit crunch, the firm said, explaining that such onerous requirements acted as a bar to first-time buyers and prevented people from getting on the property market until they were in their 30s.

GfK added that the stamp duty holiday had failed to stimulate the market as much as was originally hoped, saying it was sceptical that Government plans to extend the programme to all first-time buyers of properties worth up to £250,000 would make much difference.

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Copyright © Press Association 2010

If you're looking for great value, high quality Mortgage Payment Protection Insurance with added benefits you've found it.