First Time Buyer
FTBs lose out on properties as deposits ‘too small’
More than one in three first-time buyers saw house deals fall through in the past year because their deposit was too small to secure a mortgage. Around 18% had a deposit of less than 10% while 17% had between 10% and 20% of the house price they were planning to buy.
Council of Mortgage Lenders figures showing growth in total borrowing by first-time buyers, but the Nottingham said many are still struggling to buy the homes they want, despite 51% saving a deposit before looking.
Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said: “Borrowers with small deposits have a wide choice of loans to pick from but clearly many are struggling to buy the houses they want with so many potential deals falling through.
“It is particularly worrying that borrowers with a 10% deposit or more are struggling. They should be able to secure a mortgage and not have to miss out on house purchases simply because their deposit is too small.”
The Nottingham’s research found that more than two out of five (42%) of first-time buyers would be comfortable borrowing 15% or more of the purchase price of their first home. Around 10% would be willing to borrow 100% of the price.
There are 0 Comment(s)
Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?
Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...
Is now the time to fix your energy deal?
Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...
Everything you need to know about the pension triple lock
Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...
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.
The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts
A number of banks are luring in new student customers with cold hard cash this year – while others are compe...
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Money Tips of the Week
© AE3 Media Ltd, 21 Great Winchester Street, London EC2N 2JA, Company.