First-time buyers desert mortgage market | Money | guardian.co.uk

First-time buyers desert mortgage market | Money | guardian.co.uk

First-time buyers deserted the mortgage market in October 2011 amid further signs of a housing market slowdown – despite monthly mortgage payments becoming the most affordable in almost eight years.

The total number of loan approvals for house purchases reached 44,500 and were worth £6.5bn in October, down 8% on the previous month and 5% on October 2010, according to figures released by the Council of Mortgage Lenders.

But the number of first-time buyer loans (those with an average deposit of 20%) fell by 10% to just 16,400, although the CML said this was only down 1% on October 2010. The total value of first-time buyer loans also fell in October 2011, by 9% to £2bn