The home buying hill has become a mountain for FTB’s
New research from one of the UK’s leading mortgage intermediaries has discovered that today’s first time buyers are absorbing home loan debts, with a value of almost twice that 5 years ago.
Accordingly, the average size of a home loan for today’s first time buyer is said to be worth around £140,000, which represents an increase of 46%. In addition, over half of all FTB’s choose to procure a home loan with a value in excess of £160,000, which represents a 30% change in trend, again in as little as 5 years.
The research is further evidence of the gargantuan struggle that many first time buyers face in their quest to scale the property ladder. The study also demonstrates the lengths in which many FTB’s are willing to go and the huge financial risks they are seemingly happy to take. Furthermore, industry statistics have shown an unprecedented rise in the number of FTB’s borrowing above a 75% LTV threshold, in fact around 85% of borrowers can now be grouped into this profile.
Mortgages are getting bigger, loan terms are getting longer and yet FTB’s still require more. Many experts agree that serious market change is becoming more of inevitability every day, and could happen sooner than predicted.
