New Home Owners And Snagging Forum
Home Owners => Mortgages and Insurance => Topic started by: Philofacts on June 02, 2011, 10:02:16 am
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A Halifax survey has suggested that around two-thirds of young people who do not own their home, believe they have no prospect of getting on the property ladder. With higher deposits and strict lending criteria, many potential buyers have been put off over the past few years.
The poll of 4,000 non-homeowners for the Halifax found that many believe the banks do not want to lend to them and will "find excuses" to turn them down. The Halifax described this as "undue pessimism".
Stephen Noakes, commercial director of Halifax Mortgages, said there were two key issues dissuading potential first-time buyers from getting on the housing market. "The first one is the size of the deposit that's required today, and the second factor is fear of rejection and a number of prospective first-time buyers, about two-thirds of them, believe that most first-time buyers are rejected."
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The survey also said that just 5% of first-time buyers aged between 25 and 45 were actually saving for their first home.
The National Housing Federation say the average age of first-time buyers who are not financially assisted (by parents or via an inheritance) is currently 37 and will rise to 43.
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First-time buyers need around £30,000 for a deposit (£50,000 in London) before they will even get near a mortgage at the moment.
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It's a shame that as long as there's uncertainty in the market, this is where the average deposit is likely to stay.
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It is a good idea really though as it stops people getting into negative equity further down the line.
It also means they look at homes they can afford rather than over stretch themselves.