New buyers find it 'impossible' to get mortgage

Nearly two thirds of first-time buyers find it impossible to get a mortgage through their broker, figures show today.

Some 58 per cent of young house hunters could not secure a home loan in the last three months of last year as banks rationed lending, according to a survey from the Intermediary Mortgage Lenders Association.

Peter Williams, executive director, said only people with significant savings to put down were managing to get their feet on the housing ladder.

He said: "The first-time buyer end of the market has been hit extremely hard by lenders tightening their requirements. For youngsters without a substantial deposit, the only alternative is renting."

The average deposit now required is 22 per cent, the highest in 34 years.