Young people kept off property ladder - Mortgages - News - Moneyfacts

News

Young people kept off property ladder

Young people kept off property ladder

Category: Mortgages

Updated: 25/07/2012
First Published: 25/07/2012

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 It is now over 6 months old so the content may be out of date.

High deposits and strict lending criteria are forcing prospective first-time buyers into rented properties.

Around 38% of young people feel trapped into renting homes, rather than venturing onto the property ladder because of funding costs.

Selected mortgage lenders have reduced their rates lately; however, strict lending requirements have meant many potential buyers are having their applications withdrawn. Sometimes even the smallest mark on credit histories can go against a mortgage decision.

According to the Royal Institution of Chartered Surveyors, who compiled the figures, almost a fifth of those who have attempted to purchase their first home have seen it fall through as a result of funding.

Peter Bolton King, RICS global residential director, said: "Many first-time buyers are facing the prospect of a property ladder with no rungs. With lenders requiring such hefty deposits and affordable mortgage deals out of reach for most, a generation of potential homeowners are facing an uphill struggle. Without allowing more first-time buyers to enter the market, chains will continue to stall and transaction levels will stagnate."

Compare mortgages for first time buyers

Guide: How to save the deposit for your first home

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close