30 Apr

Credit crunch 'could benefit' first-time buyers

Credit crunch 'could benefit' first-time buyers

First-time buyers could actually benefit from the credit crunch, a spokesperson for Moneyfacts.co.uk has said.

Andre Hagger suggested that with savings rates currently at a seven-year high and property prices falling, those looking to get on the housing ladder could bide their time and secure themselves a good deal.

"With the current levels of uncertainty and volatility surrounding the mortgage industry and the housing market, maybe it's worth sitting on the sidelines and saving that ten per cent deposit until the stormy clouds blow over," he said.

He noted that although property prices have trebled over the past decade, they could fall by 15 per cent in the next 18 months.

Saving for the next year and a half would also give them the opportunity to take advantage of some of the great savings rates around, with rates of over 6.5 per cent gross "easily attainable".

However, first-time buyers may still be affected by the diminishing number of mortgage products on the market - according to MoneyExpert.com's research, one in five fixed and variable mortgages now come with a maximum loan-to-value of 75 per cent or less.
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