The outlook is definitely more rosy now than a year ago for first time home buyers. Due to lower home prices and ongoing attractive interest rates, the first time home owner is getting an approval more and more often.

Also, the percentage of mortgage payment compared to disposable income has decreased quite a bit, to 28 per cent. Compare this with the middle of 2007, when about 50 per cent was the norm.

Quite possibly the root of more success with lenders is their being less reluctant to hand out loans to first time home buyers. According to Stephen Noakes of Halifax, even that is improving. He commented on the outward perceptions of the lending industry, saying: "Despite perceptions eight out of ten first time buyer mortgages are approved."

There has been a shift in the down payment area as well. Until recently, only the best deals were offered to those first timers who were able to put down 25 - 40 per cent of a down payment. The lenders now are starting to back off that an extending decent deals with 10 - 20 per cent down payments.

This was noted when Andrew Hagger of Moneynet.co.uk said: "The competition which has driven rates lower in the mainstream mortgage market has started to filter through to first time buyer deals and even though many of the better rates are reserved for those with at least 25 per cent stake to put down, we are seeing more choice and some lower pricing at 90 per cent Loan to Value."

Despite better deals being offered with lower deposits down, many first timers are still being turned down.

Those struggling for cash to use as a down payment; they might want to look at newly built homes where the down payment is usually about 5 per cent.