Financial Times FT.com

First-time buyers unlikely to benefit

By Sharlene Goff and Elaine Moore

Published: January 8 2009 15:51 | Last updated: January 8 2009 15:51

Conditions for new mortgage borrowers are unlikely to ease even though interest rates have hit an all-time low, as expected property price falls maintain banks’ reluctance to lend.

Brokers said until the supply of mortgages improved, Thursday’s rate cut would do little to lower the cost of lending for first-time buyers or those looking to switch to a new deal.

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