Are first-time property buyers the key to the UK economic upturn?

Published by Financial Advice

Thursday 26th August 2010

At this moment in time the first-time buyer of property in the UK is a very rare commodity as mortgage lenders look to pull up the drawbridge and reduce their short-term risks.

Despite the fact that we have seen an increase in the number of first-time property buyer mortgage options over the last few days this is not a trend which the vast majority of mortgage lenders in the UK have yet taken up. Many appear happy to sit on the sidelines and reduce their own risk/reward ratio while the UK property market continues to struggle.

More answers to first-time buyers

Despite of such negative views most property investors claim that this is the best time to buy and I guess they are right. Well, mortgage or its lack is in many cases the biggest issue but there are groups seeing in this advantage, for as long as there will be number of struggling property owners willing to sell with delayed payment. It is not that bad than for first-time buyers because they can have their dream home for little now and pay the full price later.
In 3-5 years all will change and we can hope that economy will stabilize and banks will become friendly again lending money to the most. Those people still will be f-t buyers but they will have a new credit history, they will build-up their deposit and could say: we are living in this house for 5 years paying rent and now we want to buy it. I think that most banks in 5 years time will lend them 75%.

Tags: bank, commodity, first-time buyer, market, mortgage, property, uk

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