Millennials struggle to cut the apron strings

Young people who dream of moving out of their childhood home and buying their own property currently face the challenge of finding big deposits and meeting tough new criteria – two factors which mean that many are forced to remain at home, or rent through a private landlord.

The last 12 months have seen the price of a standard first-time buyer home increasing by 13.5%, often pushing dreams and aspirations of becoming a homeowner to one side and making them unattainable. The increase in house prices means that more and more people are often priced out of owning their own home.

The Council of Mortgage Lenders has recently released findings showing that July saw the number of first-time buyers completing at over 30,000 – the first time since the month of August back in 2007. However, it must be noted that first-time buyers are now borrowing much larger amounts in order to get on the property ladder, with an average loan size of £127,500.

With the Bank of England’s base rate still at an historic low of 0.5%, costs of borrowing are reduced. Following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in April, Lenders still have a responsibility to ensure that homeowners can maintain their repayments, now and in the event of the inevitable rate increase.

By seeking the advice and guidance of a CeMAP-qualified professional, potential homebuyers can make sure that they receive honest and transparent advice, and that a competitive and affordable mortgage package can and will be recommended where appropriate.



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