Mortgages on the wane for first-time buyers

Lenders tightened the squeeze on first-time buyers bidding to get on the property ladder in May, figures revealed today.

First-time buyers accounted for just 23% of all purchase approvals in May, down from 27% the previous month and below last year's 24% average, according to chartered surveyor e.surv.

Loan-to-value rates from lenders for property purchases in London are also the lowest in the country at 58.7% - below the 60.4% national average - due to the dearth of mortgage deals on offer to first-time buyers needing bigger loans to buy, pushing frustrated would-be purchasers into rentals. The capital also has a larger pool of wealthier buyers needing smaller mortgages.

Richard Sexton, business development director of e.surv said: "Those with the least equity in their homes need cheaper rates most, so it's important lenders don't make it too difficult to qualify for the best mortgages. Tightening criteria in May are going against this grain."