Taylor Vinters - Solicitors

First-time buyers are bearing the brunt of the unregulated financial system with a lack of access to mortgage finance, it has been claimed.

If there had been better rules in place to regulate the banking sector, then first-time buyers would have more choice over sensible mortgages, according to PricedOut.org.uk spokesperson Katy John.

Ms John said: "First-time buyers are bearing the brunt of an unregulated and reactionary financial system.

"We would encourage first-time buyers to continue saving to buy their homes, but only to offer prices that they can afford, including bartering with sellers and estate agents."

Her comments follow analysis by MoneyExtra.com, which indicated that banks are set to make an extra £20.1 million profit per month as mortgage customers come off fixed, tracker and capped-rate mortgages and move to standard variable rate deals.

MoneyExtra's Richard Mason urged banks to stop "profiteering" and preying on consumers "lack of financial understanding".

Clare Martin, a residential property lawyer at Taylor Vinters commented: "We are finding that the mortgage market at present is so reactionary to the ups and downs of the credit crunch with the result that mortgages do not appear to be standard, but rather they appear to vary hugely.

"It is important for all borrowers to be sure they understand the terms and conditions of a mortgage offer and understand and appreciate further that at the moment interest rates are quite depressed and are likely to rise considerably. This will result in an increased monthly mortgage repayment, which, for the inexperienced in the property market may come as quite a shock."