More assistance for first-time buyers

With the property market slumping many first time buyers are wary about stepping on to the property ladder, and those looking to make their first big move may have to rely on family members for extra cash to secure a house.

"People are likely to increasingly rely on help from their families when looking to get onto the property ladder for the first time", it has been claimed.

"First-time buyers are strapped for cash and are turning to their families to help them complete their first step on the property ladder".

Dominic Mansley, managing director of Key Financial Consultants, said that if property prices continue to increase but average salaries do not, then families are increasingly likely to provide assistance to first-time buyers.
 

"Many first-time buyers are on average salaries, but with a poor outlook in terms of salary improvements most cannot afford to make that first major step onto the property ladder".

Additionally, 100 per cent mortgages are growing in popularity as property prices become less affordable, Mr Mansley claimed.

"I'd always try to investigate a 100 per cent loan-to-value mortgage if savings aren't available," he commented.

According to statistics published by the Council of Mortgage Lenders for the second quarter of 2007, the average first-time buyer is aged 28 and on a salary of £35,000.

Many of those looking to buy are young families who need the extra room to grow, as most singles and couples are opting to rent in the current climate.

"The popularity of renting property rather than buying has risen since the start of this deep recession as most people cannot afford to buy. If you are looking for new property but are struggling financially then renting may be the better option until things pick up".

Reports show that the average first-time buyer typically takes out a mortgage for 90 per cent of their chosen property's value.

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