In years gone by many people bought their first home when they were in their early twenties, and were able to choose from a range of mortgage options such as deposit free mortgages and even 125 percent mortgages to help them get their new home furnished and set up. However, these days things are very different, with the global financial crisis and recession having had a serious impact on the mortgage and financial markets.

For the last few years first time buyers have been facing increasing difficulties in getting onto the property ladder. Over the past decade many first time buyers have been locked out of the market because of the soaring value of property in the UK. House prices rocketed in the years leading up to 2007 leaving many would be buyers unable to afford to purchase a home. However, in 2007 the global financial crisis made its way to the UK and coupled with the recession saw the value of properties start to decrease.

Whilst this may have been seen as good news for potential first time buyers there was also another problem that came at the same time in the form or mortgage restrictions. Over the past few years lenders have got rid of their 100 percent and even their 95 percent mortgages and have been demanding high deposits of 20 percent or more. Being able tom secure an affordable mortgage has also become more difficult for first time buyers despite the fact that the base rate has stood at just 0.5 percent for the past twenty two months.

As a result of all this the average age of the first time has increased to around thirty one at present, which is way higher than it has been in previous years. Furthermore it is claimed that the age of the first time buyer could increase to as high as 44 years because of the difficulties that people are experiencing in raising a deposit. Officials believe that many younger people are finding it very difficult to save in the current climate, and if they wait until they are thirty to start saving it could take up to thirteen years to save just the deposit for a new home.

One official said: “It is unsurprising that the financial crisis has impacted upon people’s savings behaviours, but the concern is that this has created a generation of people who simply do not save and cannot get onto the property ladder. It is clear that people who want to get onto the property ladder are not making the commitment to saving at a young enough age. We know it is not practical for people today to put aside huge amounts of money, but even still it is critically important that saving does not become a lost art.”