In the main the mortgage market is still treading water and the rates being offered by the lenders do not reflect the recent reduction in Bank of England base rate. Although the Government has poured billons of pounds of taxpayers money into a number of banks to help them from going into liquidation, the lenders are not recipricating and the rates being offered by the bulk of lenders are still high and loan to values on properties are still around the 80% to 85% mark if not lower.

Although there is the occasional 95% LTV deal being offered the rates are high and the arrangement fees are also high. The Government needs to be looking at putting pressure on the lenders where they have a major shareholding and demanding that the rates are reduced to help first time buyers buy a home. By doing this it will help not only those looking to buy a house get on the housing ladder but also help the house builders. If the rates are to remain at there current level then no one wins.