Tories: 'FTBs put in danger by govt policies'

The Conservative Party has slammed the government for putting thousands of first-time buyers (FTBs) at risk of falling into financial difficulty.

[UKPRwire, Fri Nov 02 2007] According to research by mform, 33,000 new buyers are running the risk of getting into trouble because they have taken out 100 per cent mortgages.

This is bad news if you are looking for someone to buy your property as potential FTBs are likely to be put off entering the market as the risks increase.

"A decade of soaring house prices, easy credit, stealth taxes, rising stamp duty and falling take-home pay under Gordon Brown has encouraged some first-time buyers to take on dangerously high levels of debt in order to get on the property ladder," said Philip Hammond, shadow chief secretary to the Treasury.

"These people will be extremely vulnerable if the housing market stagnates.

"The Conservatives' proposals to abolish stamp duty for almost all first-time buyers will help ease the financial pressure on thousands of young people trying to buy their first home," he added.

Julian King of National Homebuyers says, "There are already a lack a potential buyers in the market. This is helping the price reduction of properties across the UK as the market continues to slow.

"Previously, lenders' reckless lending criteria allowed all and sundry to grab a dangerous mortgage, now lending policy is to keep FTBs from entering the market.

"This is dangerous for the homeowner, paricularly those who have little equity in their home".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm that guarantees to make an offer on any property in the UK for vendors who need a quick sale.

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