The broker said there could be over £210m worth of mortgage finance available to first-time buyers with a 5% deposit.
MAB said this was sufficient for over 2,000 first-time buyers to buy their home every day based on figures from Halifax’s first-time buyer review.
The number of 95% LTV deals currently open to first-time buyers is at a four year high with 59 deals currently available from 21 different lenders. This is up from just 25 in February 2011, nine back in February 2010 and only three the same month in 2009.
Brian Murphy, head of lending at MAB, said first-time buyers were being held back from taking up these deals only because they were unaware that they were available again.
He said: “Well over 85% of young renters aspire to become homeowners but the vast majority of these say the fact they cannot raise a deposit is the key reason for not buying.
“There is a widespread perception that a minimum 20% or 15% deposit is required and they just don’t realise that there are now a lot more competitive 90% and 95% LTV mortgages back on the market.
“The first port of call for prospective borrowers should be to a mortgage broker as they can best assess which is the best product for their needs, but the fact that lenders are open to first-time buyers again is a really positive sign.”
