First-time buyers struggle to step onto the property ladder

October 4, 2014 by Brendan O'Neill

Borrowers

The National Housing Association has recently released a report suggesting that first-time buyers now need to save a deposit that is 10 times bigger than was needed in the 1980s.

As many as two thirds of those trying to make that first tentative step towards owning their own property now rely on financial assistance from their parents.

It is feared that if the pattern continues, mortgages will be a distant dream for many, as only the wealthiest will be able to buy a property. The report went on to state that today, the average deposit size is £30,000, whereas 30 years ago, it was around £3,000.

The Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review conducted by the Financial Conduct Authority in April saw the implementation of stringent legislation and borrowing criteria, adding another hurdle that first-time buyers must jump over.

Back in the late ‘70s, borrowers were looking for a mortgage that was 1.7 times their income. It is now typically 3.4 times their annual salary. In addition to this, many occupations pay an average wage of between £27,000 and £30,000 per year, so some analysts believe it is not hard to see that obtaining a mortgage is more challenging than in previous years.

Knowing that they provide an open and transparent service, which will identify their needs and match an appropriate solution, you can see why many people choose to seek the advice and support of an adviser who has completed the appropriate CeMAP courses and passed the relevant training.