Home ownership goal stretched to aged 38
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by Gill Montia
Brits with property-owning ambitions don’t expect to be able to buy their first home until aged 38, or 43 for Londoners, according to new research from moneysupermarket.com.
With only 1,581 home loans currently available to first-time buyers (compared with 14,940 in July 2007) the average loan-to-value ratio stands at 77%, meaning new buyers aiming for a £150,000 property need to have saved a £34,500 deposit.
The price comparison website’s study also reveals that 5% of those waiting to buy already have their deposit, whilst 6% are hoping that house prices will drop further, reducing their initial outlay.
Moneysupermarket.com spokesperson, Clare Francis, comments: “There is still limited choice if you have a deposit of less than 10%, and the rates on these mortgages are around 5.30%, which is significantly higher than the most competitive rates.”
She adds: “On the plus side, there is no rush to buy as the housing market looks set to remain subdued for the foreseeable future.”
Meanwhile, the Council of Mortgage Lenders (CML) has reported that gross mortgage lending declined to around £9.8 billion in April, down 14% from March.
According to the lenders’ body, extended holidays around Easter and the royal wedding, make it hard to read the immediate market situation, creating a “temporary loss of signal”.
Looking ahead the CML says: “Levels of activity look set to remain broadly flat.”
Adding: “It now seems unlikely that interest rates will rise much, if at all, this year and this should help keep the market on an even keel.”
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