Housing market is polarised

Ben Thompson, Director of Mortgages at Legal & General comments on the CML figures: "The housing market is now polarised according to the size of your deposit. Those with substantial deposits get a much better deal and therefore lower monthly repayments. Those who don't, end up paying a lot more. It's no wonder that most potential first-time buyers are waiting for house prices to fall further and for mortgage rates to even out a bit. After all, the longer you wait, the more you can save up. We've seen some tentative moves by lenders to offer higher LTV mortgages at reasonable rates through our Mortgage Club, but it's only going to help a lucky few. Most of these first-time buyers are going to have to double their efforts to put money aside to improve their position."