First-time buyers put buying plans off says National Homebuyers
New research shows that many potential first-time buyers are turning their backs on the market, potentially leading to a rise in people seeking a fast property sale.
[UKPRwire, Thu Apr 24 2008] Equifax has published a study, showing that the removal of 125 per cent and 100 per cent mortgages from the market has forced 47 per cent to put their plans on hold.
It means that fewer people are entering the property market, bringing demand and prices down as a result.
With this in mind, many people may seek a fast property sale in order to secure as much money for their property as possible.
"The Bank of England interest rate cuts will be welcome news for home buyers, however as lenders continue to close the door on 100 per cent mortgages, first-time buyers don't have much room for celebration," said Neil Munroe, external affairs director at Equifax.
"Our recent survey of consumers who have bought a copy of their credit report or credit rating revealed that 61 per cent of those without a mortgage plan to buy a property in the next six to 12 months. But many of those were banking on getting a 100 per cent mortgage," he added.
The survey also found that 42 per cent of respondents have less than a five per cent deposit to put towards a house.
Fast property sale expert Julian King adds, "The lack of available mortgage products, or the deliberately difficult conditions on getting a mortgage will not only be bad news for potential buyers who would otherwise be happy to get their foot on the ladder and kickstart the market once more.
"This is also hugely bad news for the homeowner who simply cannot find a buyer for their property, forcing them to sell at well below the already deflated price they were expecting".
Mr King is a director of National Homebuyers, the UK's leading quick property purchase firm. The company guarantees to make an offer to purchase any property in the UK for homeowners who need a quick sale. The company also provides a series of mortgage rescue solutions for property owners who are facing repossession.
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