Springtide reckons FLS was the most prominent development in the mortgage market in 2012 with lenders such as Nationwide recently announcing cuts to 90% LTV products with rates now available under 4.5%.
With lenders able to reduce rates and deliver affordable products at the bottom end of the market, Springtide Capital expects to see more first time buyers reaching homeowner status in the New Year.
Henry Knight, managing director of Springtide Capital, says that this in turn will kick start the housing market in general by allowing second and third time buyers to move on from their first homes and either upscale or downsize according to individual circumstances.
Knight said: “The Funding for Lending Scheme has been a prominent landmark in 2012 and is something which will impact on the mortgage market in a positive way as we go into the New Year.
“What is most encouraging is to see some of the mainstream lenders competing and adapting to the needs of the first time buyer market by offering more affordable and innovative product ranges.
“This is just the boost that the housing market needed to get 2013 off to a good start.”