The struggles facing first time buyers are well documented, but according to a report from Lloyds shows that first time buyers in the UK are, on average, £865 a year better off when compared to renters.
“Statistics like this are no doubt an incentive for those trying to get on the property ladder” James Skidmore, head of Mortgages at AAG, comments. But, with numerous barriers ahead of them, how can people take that first step?
“Overall, the number of first time buyers last year was estimated to be around 310,000 – similar to figures in 2014. This equates to 46% of all mortgaged house purchases in 2015, which is up from just over a third in 2007, which is encouraging.”
However, analysis by the independent Resolution Foundation think-tank indicates that just 10% of home owners are aged between 16 and 34.
The government have introduced numerous schemes to assist first time buyers, such as Help to Buy London, Shared Ownership, or the Mortgage Guarantee Scheme, all of which are widely available if you fit the criteria. “It’s certainly worth taking advice from a Mortgage Broker, to see exactly what you can borrow and what schemes might help you take that step to your first home.”
“We continue to see low interest rates and mortgage companies competing against one another, creating the perfect storm for cheap financing, which provides the ideal opportunity for first time buyers.”
Your home or other property may be repossessed if you do not keep up repayments on your mortgage.