Money is time for today’s first timers
Recent stats from leading property portal Zoopla show that an interest only mortgage can cost less to pay each month than the rent on a like for like property in many major town locations in the UK – and that includes many towns in our Region here in the North West too. Source http://blogs.independent.co.uk/2012/09/13/most-people-expect-to-be-35-before-they-buy-their-first-home/
But this statistic is somewhat misleading and fails to take into account the true facts facing a somewhat stuttering and stumbling property market currently, says Founder Paul Ainsworth Lord of leading Darwen Estate Agency, Ainsworth Lord Estates.
Harder than ever
Explains Paul Ainsworth Lord of leading Darwen Estate Agency Ainsworth Lord Estates, “It may well be cheaper in some instances across the County to pay a mortgage than rent each month, but, the facts right now are that it’s getting harder than ever for first timers to get their first home.
Tough to get sometimes
For one thing, getting an interest only mortgage is far from easy nowadays. Even with the good mortgage contacts, such as we have, we find interest rate mortgages are few and far between, and if you find one, you’ll probably pay a fairly heavy interest rate for it. Lenders are far from keen at the moment to consider most people for such a mortgage.
Long time saving
The other key issue is, of course, the not inconsiderable matter of a fair-sized deposit, which is an essential in order to buy these days and which is ruling many buyers out of a step onto the home buying ladder. Locally, as with the UK in general, first timers, who are also often having a pay an expensive rent, are also having to save for a fair time, unless families step in to help.”
Years of saving
Recent survey ‘stats’ from Post Office Mortgages found that nearly 50% of those planning to buy for the first time believe it will take ‘several years’ for them to save the deposit they need. The Post Office survey indicated that 35 years old is now the average age of a prospective buyer, whereas in previous generations it was the mid-twenties.
The survey also highlighted that special support was needed to help people ‘take the plunge’ in today’s difficult home buying marketplace. Adds Paul,”I entirely agree with that. It would be absolutely right to re-introduce a return to no stamp duty for first time buyers as soon as possible. The market does need that kind of help for sure.”
The survey also found that assistance to help families buy a home at important life ‘milestones’ such as getting married or having a child were also very much in demand by those surveyed.
Said Paul finally, “For sure, if the situation does not ease in the next two years, there will be a very real need for some new considered Government support initiatives, in order to the help the first time buyer get the start they need. They’ll definitely need some kind of specific support by then, as indeed, I suspect,will the property market in general.”.