First time buyers find the housing market impossible
First time buyers are finding it difficult to obtain a cheap mortgage deal, more news revealed.
Property prices have increased over 200% over the last decade, the average income has only escalated by 53%.
Housing charity firm Shelter suggested that a impossible situation is being created even worse by Britain's mortgage down turn.
Today house prices have suffered a slump, majority of first time buyers are unable to meet lending conditions. Making a purchase without a minimum deposit of 5% has always been a case, now a greater deposit is required, at least 25%.
Shelter's chief executive, Adam Sampson commented: '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.'
To get on the property ladder in London is becoming impossible. The average home costs £260,000. Mortgage repayments extract £1 in every £5 of a standard family income, whereas during 1997 it was £1 in every £8.
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