The age of the first-time buyer has increased again from 36 to 38, as borrowing hits an all-time low. First-time buyers are being forced into renting accommodation which can sometimes be more expensive than buying a house. The period of tenancy is also increasing as buyers are forced into a circle of paying rent, which is not enabling them to save up enough money for a deposit.
Borrowing problems tend to arise when first time buyers have less than a 25% deposit to put down as an initial payment, the property market is viewed as unstable at the moment, and banks want to guarantee that they will see a return on their lending.
The showing of ‘how to blow a fortune’ on Panorama, BBC 1 this week, covered the issue of banks easy lending in Ireland - 110% mortgages, landlords borrowing huge amounts of money over the phone, of some clients being sold 40 year mortgages. Light touch regulation of our banking system and access to cheap funding on the wholesale markets fueled the boom in the Irish housing Market. This question remains, so why does the banking system have to go to two extremes when considering who they lend money to?
If you are a first-time buyer and have been affected by any of these issues then please get in touch with one of our branches today and we will be more than happy to discuss your mortgage options.
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