You are here: Home - Uncategorized -

First-timers thin on the ground as house prices keep rising

0
Written by:
11/04/2007

The number of first-time homebuyers fell in February to the lowest level in two years, according to the Council of Mortgage Lenders (CML).

Mortgages taken out by first-timers dropped to 25,600 from 26,400 the month before, in line with seasonal trends, but the total is also down on the same period last year and is the lowest since March 2005.

The data also showed that more homebuyers were choosing a fixed rate mortgage, reflecting general concern that there are more interest rate rises to come in the near future and that the cost of borrowing will continue to rise.

Michael Coogan, director general of the CML, said: “With the chance of at least one more interest rate rise this year, first-time buyers are taking the sensible option of taking out fixed rate deals, and locking into the payment security that they provide.”

He continued: “First-time buyers are the most financially stretched group and the fact that a record number of them are choosing a fixed rate deal demonstrates their desire to plan ahead and avoid the risks interest rate rises will bring.”

Many commentators have observed that the market has responded to the interest rate rises by cooling slightly and most believe that the Bank Rate is high enough.

 

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Early taste of summer’s warmth boosts UK retailers

UK retail sales rose in March, boosted by the mild weather, according to figures contained in a report from the British...

Close