Mortgage still being sought by first time buyers
November 17, 2008
A recent report has indicated that despite high house prices and restricted mortgage availability, coupled with higher borrowing costs and the threat of negative equity due to falling house prices, many non-homeowners are still seeking mortgage loans in a bid to try and get onto the property ladder. It is thought that thousands of people are still trying to get onto the property ladder despite the depressed conditions.
Recent research has shown that over 50% of non-homeowners thought that renting a property was simply throwing money down the drain, and they were looking to get on to the property ladder despite the chaos on the housing and mortgage markets.
One official said: “Whatever issues the housing and mortgage markets is facing it seems British consumers are still very much aware of the benefits of homeownership - and the drawbacks of the alternatives.”
He added: “Assuming the Nationwide Building Society’s chief executive Graham Beale is right and we see signs of recovery in the housing market in 2010, it clearly makes sense for would-be first-time buyers to keep a close eye on house prices, the mortgage market, and available properties. It’s true that they may be able to buy for a lower price if they wait longer, but it’s also possible that house prices will pick up sooner and faster than anyone expects, in which case they could end up ‘missing the boat’ and paying more.”
Officials from the Council of Mortgage Lenders showed that the average first time buyer was putting down around 15% of the property value by way of deposit, equating to around £19,000.
The industry official said: “This is an interesting figure, for two reasons. First, it indicates that the average first-time buyer is buying a property now worth around £125,000. Second, if the peak-to-trough drop turns out to be around 25%, an average ‘first-time buyer’ property could drop further, to around £105,000.”
- Much larger deposit required from first time buyers Whilst industry experts are stating that first time buyers can at last look forward to increased affordability due to falling house prices and interest rates, both of which are expected to continue falling over the
- More bad news for those with low deposits Over recent months an increasing number of lenders have been demanding larger deposits from borrowers looking for mortgages, and this has resulted in many first time buyers and low income buyers being squeezed out of
- First time buyers struggling more than ever First time buyers are thought to be facing their toughest challenge yet when it comes to getting onto the property ladder, with officials warning that whilst income levels have only gone up by 53% on
- Is it worth waiting to save money on stamp duty? Affordability for first time buyers looking to get onto the property ladder has continued to dwindle over recent months despite the fact that house prices have been falling month on month and are now said
- 5% mortgages still falling First time buyers have had it tough for many years. Out of the past eleven years ten of them have seen house prices soaring year on year, and for first time buyers this has resulted
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