New product development focuses on first-time buyers

Newcastle Building Society is the latest lender to launch a mortgage product specifically for first-time buyers.

The building society follows in the footsteps of lenders such as the Woolwich, Bradford & Bingley, NatWest and Intelligent Finance, who are all targeting this particular market.

First-time buyers are finding it increasingly difficult to take their first step on the property ladder.

According, to Halifax, the average house is now priced at around £100,000 ‘ a figure that will only purchase a one-bedroom flat in London

But with income multiples increasing and more unusual products becoming available, the industry needs to ask whether lenders are taking too much risk?