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First time buyers put off mortgages

Date: 27 Jan 05

One in three first-time buyers want to get mortgages this year - but only 18 per cent are confident they will achieve it.

This news comes just days after deputy prime minister, John Prescott, acknowledged how hard it is for first time buyers to get on the property ladder.

A further 37 per cent said they would consider buying through a housing association, while 31 per cent were happy to club together with family or friends to get their first property.

Barry Naisbitt, chief economist at high street bank Abbey, remarked: "It is clear, however, that potential homebuyers are trying to boost their chances of owning."

Nearly 60 per cent said they would save for a deposit and more than half of all potential buyers are hoping to have a deposit of ten per cent or more.

Commenting on this, he said: "Not only might this help them get better mortgage deals, it could offer some protection against negative equity should house prices fall."

When asked why they wanted to buy, just under half gave "get on the property ladder" as their answer.

"Stop paying rent" and "to obtain own space and independence" were the next most popular answers.

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