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   Mortgage repayments for first-time buyers 'have nearly halved' - research
Mortgage repayments for first-time buyers have nearly halved during the past three years due to record low interest rates and house price falls, research indicated today. A typical first-time buyer now spends just 28% of their pay on monthly mortgage repayments, down from a peak of 50% in June 2007, according to high street bank Halifax. At the same time, 94% of homes bought by first-time buyers are now exempt from stamp duty. But despite this only 35% of people hoping to take their first step on to the property ladder say they are able to take advantage of the improved conditions, with more than half saying buying a home is still out of their reach. Only 94,600 people bought their first home during the first six months of the year, around half the number who got on to the property ladder during the same period of 2007, although the figure is 28% higher than in the first half of 2009. However, there are signs that first-time buyers are becoming more confident about mortgage availability, with just 3% saying a lack of suitable mortgages had prevented them from buying a home. Halifax added that its figures showed eight out of 10 first-time buyer mortgages were approved during the first half of the year. People buying their first home put down an average deposit of £30,380 during the second quarter of the year, the equivalent of 22% of their home's value. The group estimates it takes the typical first-time buyer between three and five years to save their deposit in the current market. More than a quarter of first-time buyers have not taken a holiday for more than a year in order to save for a deposit, while 10% have moved back in with their parents and 12% have taken on a second job. Stephen Noakes, commercial director for mortgages at Halifax, said: "We believe it's important that first-time buyers understand that while there are still challenges in raising deposits, other market conditions are more positive. "Affordability has significantly improved, meaning the amount of a typical first-time buyer's monthly pay packet that needs to be dedicated to their mortgage is now below the 25-year average and importantly, despite perceptions, eight out of 10 first-time buyer mortgages are approved." The research was based on Halifax's own data and a survey of 500 first-time buyers carried out by ICM during August. Source:24dash.com Due to problems with spam only SalfordOnline members can now leave comments. Becoming a member of SalfordOnline only takes a minute, just hit the red Join Us button at the top right hand side of the page to create your Personal account. Got a news story? Need help with publicity for an event in Salford? Send it to newsdesk@salfordonline.com or call the SalfordOnline newsdesk on 0161 789 5377. |
