Glimmer of hope for first time buyers

First time buyers may be hit hard at the end of the stamp duty holiday in January, however there is some good news to be celebrated.  Figures from moneysupermarket.com show that the number of mortgage products available for first time buyers is at its highest since May this year with 1,354 products now available; an increase of 18.3 per cent since August when products were at their lowest levels.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, said: "It is encouraging to see an increase in lenders providing suitable options for first time buyers, as the number of products in this arena have been low for some time. If lenders continue to give a helping hand to first time borrowers we could see a significant improvement in the housing market.

"To turn this glimmer of hope into reality for first time buyers, the Government should announce an extension on stamp duty exemption for properties under £175,000 in Wednesday's Pre Budget Report. Even better, the Government could go one step further and raise the benchmark to £250,000 as recently suggested by the Conservatives.

"For those looking to step on the ladder Newcastle BS 2 year tracker at 2.49% is currently the best product on the market for those with a 20 per cent deposit. First time buyers should shop around and research all products carefully as once you have considered fees, an eye catching rate may not be the cheapest option."