Consumers Determined To Buy First Home
Keywords: first, time, buyers, property, purchase
Consumers are determined to get onto the property ladder, according to a new report.
Figures released in Bradford & Bingley’s annual First Time Buyer Report show, some 46 per cent of potential buyers are concerned that house prices are set to become ever more expensive over the coming months, with a quarter stating that if they do not buy a home now than they never will be able to do so in the future. As a result consumers are willing to take out a secured loan “at almost any cost”, the firm suggests.
However, following the decision by the Bank of England’s monetary policy committee earlier this week to increase the base rate by 0.25 percentage points to 5.75 per cent, the financial services firm claimed that first-time buyers will now be required to pay an extra 25 pounds every month in secured loan costs for a typical 120,000 pound mortgage.
Andy Wiggans, director of mortgages for Bradford & Bingley, said: “Having to find an extra 25 pounds per month, at a time when finances are squeezed, is going to hit first-time buyers’ pockets but our research shows it’s not going to deter them. With concerns over future affordability and property prices many are doing everything they can to get on the property ladder as soon as they can. While there are now many flexible, competitive mortgage products on the market which can help people make that step up, first-time buyers have to be careful not to over-extend themselves, especially as there may be further rate rises to come.”
Meanwhile, some 79 per cent of consumers believe that the base rate is set to rise over the course of the next 12 months. This same proportion of first-time buyers was also reported to be in debt - a rise from the 49 per cent noted during last year’s study. Figures from the financial services firm also indicated that 17 per cent of respondents owe more than 15,000 pounds. To help with meeting these expenses, just over a third (35 per cent) of those surveyed look towards financial aid from their parents.
Despite this seeming urge to get onto the property ladder, a recent study has indicated that many Britons are often not attached to the home they are living in. Research from Alliance & Leicester revealed that just over half of homeowners see their current property as a “halfway house” to buy their ideal property in later life. Director of mortgages Stephen Leonard said: “It seems people are happy to move into a property that isn’t their ideal, in order to move up the property ladder and reap the benefit of rising house prices, More and more people seem to be looking for property on the basis of an investment, rather than buying their dream home.” The study also indicated that potential first-time buyers only intend to stay at an address for an average of three years and four months.
Abbi Rouse writes for Essentially Home Loans where visitors can apply for secured loans online, we also specialise in bad credit loans for UK residents. Visit Today: www.essentiallyhomeloans.co.uk
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