Struggle continues for first time buyers
According to recent report first time buyers looking to get a footing on the property ladder in the UK are continuing to suffer, even through house prices have been falling, and are now lower than they were this time last year. Whilst many first time buyers may have hoped that falling property prices would at last give them a chance to get onto the property ladder they have found a number of other obstacles in their way over recent months.
The global credit crunch has made things very difficult for all consumers, but has hit first time buyers particularly hard due to the changes that mortgage lenders have had to make to their lending practices and criteria in order to try and weather the effects of the credit crunch. Borrowing for fist time buyers has become more difficult and more expensive, which means that many first time buyers may still find that they cannot get their foot onto the first rung of the property ladder.
Over recent months lenders have withdrawn deals that used to be popular amongst first time buyers, such as 125% and 100% mortgages, and many are now demanding a higher deposit than the traditional 5%, which is very difficult for first time buyers with no savings. In addition interest rates and arrangement fees have rocketed, despite three recent base rate cuts.
One official said: ‘Despite falling house prices, many lenders are increasing their mortgage rates, making an already desperate situation worse. It means there is a generation of young people and young families being locked out of the housing market without a hope of ever sharing in the asset wealth of the generation before.’
Recent additions:
- Many lenders ignore base rate cuts
- Mortgage approvals slumped in March
- Credit crunch means slump in mortgage lending
- Could you be entitled to a break in monthly mortgage repayments?
- Nationwide asks for larger deposits from borrowers
Related Posts
The struggle gets tougher for first time buyers
Over recent months there has been a great deal of speculation over house prices in the UK, with the general consensus being that house prices are set to fall by as much as 20% over the next year or two. With house prices having soared by 200% over the past decade, this may seem like a drop in the ocean – particularly considering that the average income has only gone up by around 53% in the same period. However, it is the news that many first time buyers have been waiting for, as for many falling house prices meant that they could finally look at getting their foot onto the first rung of the property ladder.»
The first time buyer affordability crisis continues to hit
Recent reports have suggested that first time buyers in the UK are still in the throes of an affordability crisis, despite the falling house prices and despite predictions that interest rates are set to fall a number of times this year. First time buyers have been experiencing affordability problems for some time now, and fewer and fewer first time buyers find themselves in a position to get onto the property ladder.»
65 percent of would be first time buyers face gloomy outlook
It has been reported that as many as 65 percent of would be first time buyers that may have been hoping to get onto the property ladder before house prices start increasing again may have little or no luck, as they do not think that they will be able to afford to do so.»
First time buyers paying a fortune on mortgages
Things have not been easy for the average first time buyers for many years when it comes to getting onto the property ladder. The last ten years has seen many first time buyers priced out of the market, as property prices in the UK have rocketed, leaving many unable to entertain the idea of getting on to the property ladder because of the cost of buying a home. However, property prices have been falling over the past year, and are expected to continue falling for the foreseeable future.»
How first time buyers are faring in the current climate
It seems that no matter what happens first time buyers in the UK are destined to get a raw deal when it comes to trying to get onto the property ladder. »
[...] Struggle continues for first time buyers [...]