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Buyers waiting to use cheap mortgages

Date: Mon, 14 Nov 2005

Property buyers are delaying purchasing a home because they want to get good value for money.

A new survey from Alliance & Leicester shows that many buyers are hoping that a combination of lower asking prices and cheap mortgage deals will mean a bargain purchase if they delay making a move.

The research discovered that 21 per cent of people play the "waiting game" if they feel houses are overpriced, even though 71 per cent believe that prices did rise when they were waiting – with 19 per cent saying the value of the kind of property they wanted went up by over £50,000 during that time.

"The research highlights that some homebuyers are playing the waiting game to see if house prices will fall," said Stephen Leonard, director of mortgages at Alliance & Leicester.

"Delaying tactics signify that homebuyers are being cautious about the property market and are considering their choices carefully before leaping in. There are various ways that homebuyers can get a foot on the ladder, part of that decision is choosing their mortgage deal carefully," he added.

Around 78 per cent of people think that properties are overpriced and are only affordable via a cheap mortgage deal.


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