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First time buyers must remember life insurance

Date: Thu, 12 May 2005

First time buyers are being warned to remember life insurance when budgeting for a new home.

Research conducted by Woolwich shows that the total number of house loans given to first time buyers since 1999 has fallen by 37 per cent, in part due to rising costs and stamp duty charges.

"First time buyers face particular problems in the UK, through a combination of high house prices, and stamp duty costs which can be the final financial straw," said the head of mortgages at Woolwich, Andy Gray.

The cost of property has increased by around 90 per cent between 1998 and 2003, meaning that additional costs such as life insurance could be ignored as people attempt to get on the property ladder.

Mortgage lenders have increased the number of specialist first time buyer loans available, which include discounted and stepped tracker products, in a bid to encourage more people to move into their own home.

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