1 Nov

Turbulence fails to shake first time buyers

Turbulence fails to shake first time buyers

Forecasts of problems in the UK property market have failed to quell the enthusiasm of first time buyers - with more and more of these seeking to borrow more in order to fund the purchase, it has been revealed.

According to figures from Fairinvesment.co.uk, first time buyers seeking 100 per cent mortgages accounted for 78 per cent of all requests received between September and October this year.

This is an increase of over 20 per cent compared with the same period last year.

Commenting on the findings, James Caldwell, director of fairinvestment.co.uk, said: "Our figures suggest that while overall there have been fewer mortgage enquiries since the first quarter of 2007, first time buyers are still keen to seek out a deal and are fully prepared to opt for 100 per cent mortgages if it means getting their own home."

However, although 100 per cent mortgages "may seem like the answer" to the problem of high property prices, Mr Caldwell warned that those opting for the products must be aware that they carry high interest rates and unlike other products have no equity to ameliorate the impact of a fall in house prices.


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