The situation for first-time buyers is "tough", according to a report.
Some 33 per cent of potential first-time buyers are willing to compromise on location or property size when trying to find a mortgage, if prices continue to rise, the Abbey study showed.
Furthermore, one in four first-time buyers would be forced to scrap their plans of trying to find a mortgage altogether, while 17 per cent would be willing to take a buy-to-let mortgage, in a bid to get on the property ladder .
Ray Boulger, a mortgage expert at lender John Charcol, recently claimed that many first-time buyers are unable to find a mortgage they can afford, which is then driving up rental demand and the buy-to-let sector.
Abbey states that the problem can be alleviated by mortgage lenders offering "good deals" which meet the requirements of first-time buyers.
Specialist first-time buyer mortgages, with features such as high loan-to-value, free valuation, cashback option to help with purchases and assistance toward legal fees can help borrowers to find a mortgage which they can afford, Abbey claims.
Tough situation for first-time buyers, study shows
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Tough situation for first-time buyers, study shows
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