A generation of aspiring homeowners is in danger of being lost, after a new study found the barrier to home ownership in the UK continues to widen.
According to a joint study from Genworth Financial and York University chair of the Centre of Housing Policy Professor Steve Wilcox, mortgage advances to first time buyers have fallen by almost 90% since 2006.
The research found that 28,000 90% loan to value (LTV) mortgages were originated in 2009, down from 245,000 in 2006.
Meanwhile, the number of first time buyers under the age of 30 who were able to buy without outside assistance towards their deposit was found to have fallen by 100,000 a year over the same period.
An average 10% deposit for a UK first time buyer in 2010 is £18,600; in London, the average is £29,700.
"Since the credit crunch, lenders have withdrawn almost all high LTV mortgage products usually associated with first time buyers and, as a consequence, the majority of prospective first time buyers have been excluded from the market," said Angel Mas, president of Mortgage Insurance Europe at Genworth Financial.
"Not only does this have wide-reaching ramifications for the health of the UK economy as a whole, but the deposit barrier represents a new obstacle to social mobility.
"Ironically, there has never been a better time to get on the property ladder as interest rates and property prices are at an all time low. Yet the current deposit requirements ensure home ownership is kept firmly out of reach for all but a privileged few."
Despite the drop in first time buyer mortgages, some brilliant deals which might just help those trying to take their first step on to the property ladder can still be found with a little bit of effort.
Yorkshire Building Society has a number of mortgage deals available to borrowers with only a 10% deposit, while first direct and Northern Rock both have deals available to those with a 15% deposit.
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