Lenders `have tightened their criteria`

People seeking home loans are now subject to stricter criteria imposed by lenders, it has been suggested.

According to Sue Anderson, head of member and external relations at the Council of Mortgage Lenders (CML), there are consequently fewer high loan-to-value mortgages being made available.

The expert went on to suggest that this is arguably "no bad thing" as it helps to protect both consumers and finance providers against future house price falls.

She added: "On the other hand, it does mean that [first-time buyers] may have to wait a bit longer before they can access mortgage finance if they haven`t already got substantial savings accumulated."

According to CML figures, 40,000 home loans were approved in October last year, a slight rise on the 35,000 approved in September.

However, the number was still small compared with the 83,000 mortgages approved by lenders in October 2007 before the housing market troubles took effect.