The Ongoing Struggle (For First Time Buyers)

With interest rates now up to five point five percent and another interest rate tramp expected in August, it is not surprising that lone 1 in 10 first time buyers are currently making it onto the property ladder.

The state of affairs is additional confounded by deep-pocketed buy-to-let investors investing in the places typically favoured by first-time buyers; this is generating an acute shortage of low-cost starter homes for would be homeowners. It is also becoming increasingly hard for first time buyers to happen property valued under the postage duty threshold of one hundred and twenty five thousand pounds.

Commentators are calling for the Government to step in and computer address the growing problem of deficiency of low-cost property, one option would be the abolition of postage duty for first time buyers. The 1 percent tax on the average terms of a first time buyer's property is one hundred and 80 thousand lbs - a batch of first time buyers have got no nest egg for a deposit allow alone for paying postage duty.

The mortgage approval rate have also fallen as lenders go wary of how much debt first buyers can take on. First time buyers are also being advised to demo cautiousness when considering a mortgage that is deserving more than than the property they are purchasing - some first time buyers are looking at one hundred and twenty percent mortgages, with the position to using the extra money to pay for the fees involved with buying.

But there could be a beam of hope for struggling FTB's (First Time Buyers) as the property market is showing the first marks of slowly and lenders are coming up with inventive ways like co-buying and rent-a-room mortgages to assist get FTB's onto the property ladder and FTB's volition always be welcomed by Sellers as they have got no chain.