Is now the time for the return of the first time buyer?

Recent developments in the first time buyer mortgage market suggest that the market is picking up, and that now might be the time for the return of the first time buyer.

In the last month, Abbey, Co-operative Bank and Lloyds have launched new first time buyer mortgages with a range of incentives, so is now the time for first time buyers to step on to the property ladder?

Commenting, chartered financial planner at Fairinvestment.co.uk, Sharon Bratley said: "It is about time that the big name high street lenders started offering competitive first time buyer mortgage deals.

"Until first time buyers can comfortably return to the mortgage scene, there is not going to be a recovery of the market, so these latest offerings are an encouraging sign.

"LTVs are an important factor for first time buyers without any equity to fall back on, and these are slowly beginning to increase - Lloyds TSB now offers a first time buyer deal with a maximum LTV of 95 per cent - although a further 20 per cent must be held in a linked savings account, meaning it is only achievable with the support of family and friends.

"However, it is important to make sure potential buyers are getting the best deal overall, not just the LTV, and there are a number of factors to consider, because attractive first time buyer mortgage deals are irrelevant if the lending criteria are so strict that people still can't actually get a mortgage.

"Buying a house for the first time can be daunting - it is a big step - so first time buyers who do want to enter the market should make sure they know and understand their options rather than jumping in head first.

"Reading up on literature like our mortgage guide for first time buyers and seeking impartial advice from experts are all part of the process," Mrs Bratley added.