Fewer mortgages to benefit new buyers

First-time buyers are set to benefit "hugely" from the global credit crunch and the resulting reduction in available mortgages.

That is according to Firstrung, which said that fewer mortgages will force house prices down and this will help new buyers onto the property ladder.

Paul Holmes, operations director at the firm, said that first-time buyers are in a win-win situation because they do not currently own a property so have nothing to lose.

"I think first-time buyers are going to benefit hugely. You have first-time buyers who are flavour of the day from house builders who have over-developed massively and now have no customers and so the only people they can possibly look for are first-time buyers," he explained.

"If first-time buyers think they've got a bargain, then fine, buy it.

"If not, they've waited this long so where's the harm in sitting out the market a little bit longer and watching as this drama unfolds," continuedMr Holmes.

First-time buyers may also be boosted on April 10th when the Bank of England announces its base rate decision for the month.

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