Mortgages -
First time deposit still out of reach - 16/06/2008
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First time buyers now have to raise a mortgage deposit, which is invariably more than their average salary.
The average house price for first time buyers is £162,000, with mortgage lenders typically asking for 13 per cent as a deposit; the average salary for first time buyer is £20,113 a year.
From today, Halifax – the UK's biggest mortgage lender – will refuse home loans to people who need to borrow more than 60 per cent of the property's value.
Keith McNeilly, co-founder of Moveme.com, said: "While people are still moving, the increase in the number of people choosing to move between rented accommodation is a reflection of consumers' lack of confidence in the property market and current affordability constraints."
Mr McNeilly added: "Potential first time buyers who previously would have been the largest group moving from renting to buying, are now delaying a purchase as an uncertain market and tougher lending criteria is making it harder for this group to step onto the property ladder – a trend that is likely to continue for the rest of 2008."
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