Date Published 25 October 2008
The number of loans granted to first time buyers declined in August to 15,600, according to data released by the Council of Mortgage Lenders (CML), whose members provide 98 per cent of all UK mortgages. The number of loans granted, is the lowest since the CML began compiling the information back in 2000, with the first time buyer average approved loan at £106,754.
According to property data company Hometrack, it is estimated that there are 1.6 million 20-39 year olds, who are renting because! they cannot afford to get on the property ladder. Potential buyers are forced to stay in rented accommodation for longer than they had planned.
Mortgage finance is still generally expensive and first time buyers are now spending 12 per cent more per week on mortgages, compared with a year ago. This coupled with increased deposit requirements, is resulting in further deterring prospective buyers.
Consequently many first time buyers are ‘playing the waiting game’ in the hope that given time, they will once again be in a position to climb onto the property ladder when the housing market ‘bottoms-out.’
However the current market does now offer genuinley affordable properties for 1st Time buyers, so be careful playing the waiting game.