Turbulence fails to shake first time buyers
Forecasts of problems in the UK property market have failed to
quell the enthusiasm of first time buyers - with more and more of
these seeking to borrow more in order to fund the purchase, it has
According to figures from Fairinvesment.co.uk, first time buyers
seeking 100 per cent mortgages accounted for 78 per cent of all
requests received between September and October this year.
This is an increase of over 20 per cent compared with the same
period last year.
Commenting on the findings, James Caldwell, director of
fairinvestment.co.uk, said: "Our figures suggest that while overall
there have been fewer mortgage enquiries since the first quarter of
2007, first time buyers are still keen to seek out a deal and are
fully prepared to opt for 100 per cent mortgages if it means
getting their own home."
However, although 100 per cent mortgages "may seem like the answer"
to the problem of high property prices, Mr Caldwell warned that
those opting for the products must be aware that they carry high
interest rates and unlike other products have no equity to
ameliorate the impact of a fall in house prices.