First time buyers may still need to find over £50,000
March 29, 2010
A recent report has shown that the number of mortgages that are available for first time buyers that have just a 15 percent deposit available has been increasing, and that there are now around four hundred mortgages on the market that could prove ideal for first time buyers.
However, officials have said that despite the increase in the number of mortgage products aimed at first time buyers many of these buyers would still need to raise a deposit of around £50,000 or more to have any hope of getting onto the property ladder.
Officials believe that the crippling amount of money that many first time buyers may still have to raise in order to buy a property means that many will still be locked out of the property market despite the fact that there are now more deals on the market and the base interest rate is at an all time low of 0.5 percent. The data comes from the latest house price and affordability index from FindaProperty.com.
Around 50 percent of people that were polled as part of the survey said that their biggest barrier to getting on to the property market was not being able to afford to make mortgage repayments but the issue of being able to raise a deposit.
For first time buyers there is no previous property from which to take equity in order to put down as a deposit, so this is a group that has to rely on savings or even parents in order to try and get a deposit together and buy a home.
There are schemes available to help first time buyers that cannot raise the deposit, such as the Home Buy scheme from the government and shared ownership schemes from housing associations across the country.
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