It has been consistently in the news about the steady rise in house prices in the UK, and so with it won’t be any surprise that young first time buyers are struggling to get together a deposit for their first purchase.
A study conducted by the Institute of Fiscal Studies has announced that even the cheapest local homes are now out of each for more than 40 percent of young adults even with a 10 percent deposit.
Over a twenty years ago, back in 1996, more than 90 percent of 25 to 34 year olds would have been in a position to be able to purchase their first home with a 10 percent deposit. At this time lenders were providing mortgages where a mortgagee could borrow up to four and a half times their annual salary.
Since this time house prices have risen by 173 percent whilst the average pay for those ages up to 34 years has risen by just 19 percent leaving many unable to keep up with what’s required to purchase their own home.
The amount of homes available in the UK is also lower than the Government would like and whilst they have a plan to build further homes in the UK there is much more required that is currently available.
For those that are in a position to buy, speaking to a qualified Mortgage Adviser can help you get the best deal for your first home. If you’re already in your own home and you’d like to have a look for your next mortgage deal then this is also a great opportunity to speak to one of our advisers.
You can call the team on 03333 44 85 11 or complete the form below and a member of the team will be in touch as soon as they can.