FTB’s are becoming more cautious
Many first time buyers are willing to sacrifice certain aspects of their lives, if by doing so, the chances of getting onto the property ladder will be increased.
According to a new report, first time buyers are taking a far more practical approach to buying a home, and are less inclined to source home loans that are above 80% of the property value. Recent changes in the market (namely interest rate rises) have caused many first time buyers to rethink their strategies before committing to large loans, for fear of financial vulnerability if further market changes occur.
First time buyers have become more conservative, with many preferring to change their current lifestyles in order to save a little more, and delay the purchase of their home, as a result. Analysts state that these new findings are a “breath of fresh air”, in light of last month’s news re “ the 125% mortgage” which has been introduced to “help” financially limited buyers. However, many have criticised the scale of such a loan, stating that many FTB’s would suffer for taking on to big of a commitment.
The housing market in the UK is still strong, albeit starting to show signs of slowing down. The continual rise in interest seems to have caused reaction from the FTB community, as demonstrated through this new, more cautious wave of buyers.
