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.”
- Drop in level of self cert mortgages Since the onset of the global credit crunch in 2007 the mortgage market has undergone many changes, and this has been reflected in recent data that has been released in relation to self certification mortgages.
- Mortgage lenders attempt to cut costs There has been evidence that competition in the mortgage market is hotting up again, with lenders striving to increase their share in the mortgage market by trying to cut costs for potential buyers. Many lenders are
- First time buyers could be affected by return of buy to let landlords According to a recent report a rising number of lenders are starting to approve mortgage deals for buy to let borrowers following a rocky period when fewer and fewer of these deals were being approved.
- 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
- First time buyers spending fortune on deposit and mortgage Data from a recent report has suggested that first time buyers are now spending a fortune on their mortgage deposit and their first year of mortgage repayments. The report claims that first time buyers are
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