First-time Buyers of Houses in Credit Crunch
Saturday, November 15, 2008 9:07
It’s hoped by the first-time buyers that the falls of house prices will mean they finally make it on to the housing ladder. However, they may be disappointed and may lose the race to the investors.
The size of deposit required by lenders means that by the time first-timers have saved up, buy-to-let investors with big deposits will have snapped up all the bargains. Though there are some mortgages available for borrowers with smaller deposits, the interest rates, which is at about 6.59%, are not competitive at all.
It’s predicted by some experts from estate agencies that the condition in the mortgage market won’t ease for first-time buyers until at least 2010. and by that time, the house prices should be on their way back up. As a result, the would-be homeowners could miss out on the great chance to secure their first home at a good price.
Due to the lack of a deposit, coupled with the thinking that prices are still falling, there should be few first-time buyers coming back into the market. However, over the recent weeks, it’s been reported that increased interest among first-time buyers in the areas where prices at the lower end of the market have already fallen by as much as 20%. The sellers accepting offers significantly below asking price now are encouraging the buyers with enough cash to make inquiries.
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