First time buyers struggle to get on property ladder
First time buyers chances to jump on the property ladder has increased by almost 3%. Nearly 90 percent of first time buyers are looking to purchase property on their own than joining forces. The average first time buyer mortgage can cost £133,943, this indicating that first time buyers must have a deposit equivalent to two years’ average earnings.
On the whole the average property values have increased by only 2.3% over 1 year to November 2007. However the average property value remains £227,484. Prices for home movers have in fact dropped slightly while the average property value of those looking to remortgage has risen by 8.6% to £256,868.
Senior Editor at Moneyextra.com, Robin Amlôt spoke further, “The sharp rise in property values of those remortgaging may be an indicator of how the credit crunch is extending beyond the traditionally vulnerable sectors of society.”
“We have witnessed an increase of almost a fifth in the average value of secured loans being sought over the last 12 months.
“The outlook for the mortgage market in 2008 is fairly grim. While interest rates appear certain to be significantly lower in 12 months time we may have an uncomfortable journey getting there.”
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