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'Sacrifices needed' for a secured loan to be in reach

'Sacrifices needed' for a secured loan to be in reach

Category: Loans

Updated: 31/10/2008
First Published: 03/10/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Those hoping to get on to the property ladder may have to cut back on expenditure if they are to secure a mortgage, it has been suggested.

Michael O'Flynn, content editor for the FindaProperty website, noted that those seeking a secured loan in the current financial climate will need to raise cash for a large deposit.

With Nationwide and Halifax reports putting the average house price between £164,654 and £174,178, Mr O'Flynn observed that first-time buyers would need to raise £16,500 to £17,500 before being given a secured loan.

And in order to do this, he explained, they should be "prepared to make some sacrifices".

"Treats such as eating out and holidays abroad may be worth missing out on for a year or two, as long as they keep their mind on the end goal of owning a home," said Mr O'Flynn.

Last year the Co-operative Bank found that 57 per cent of people would not be willing to make sacrifices in order to buy property, but by September of this year that figure had dropped to nine per cent.

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