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First-time buyers forced to delay UK mortgages

Date: Wed, 12 Apr 2006

Many first-time buyers are having to wait to step on to the property ladder because of rising house prices.

Recent research from SmartNewHomes.com estimates that many buyers are only taking out their first UK mortgage when they are over the age of 30.

In particular, 85 per cent of first-time buyers blame rising house prices for pushing that first property out of their affordability. Just 15 per cent of the potential property owners cited non-financial reasons for not taking out a UK mortgage, with 3.8 per cent fearful of the added responsibility and commitment, and a further 10.9 per cent not having found a property to meet their needs.

David Bexon, managing director of SmartNewHomes.com, said: "This research highlights the severity of the struggle that first-time buyers are facing. If this trend continues then we could face the very real threat of property ownership being a privilege reserved for only the very wealthy."

He added that the continued fail for wage increases to match house inflation means that many buyers are unable to secure a competitive UK mortgage based on income rather than affordability.


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