Turning point for first-time buyers next year

Permalink: Turning point for first-time buyers next year
by Kay Murchie

According to mortgage broker, John Charcol, there will be a variety of factors that are likely to provide first-time buyers with a more favourable market next year.

The mortgage broker has tipped lower interest rates, improved government shared equity schemes and other factors that will prove a turning point for first-time buyers in 2008.

Furthermore, first-time buyers will benefit from the absence of a transaction chain while others struggle with the credit squeeze. John Charcol said first-time buyers should observe the market and look for a bargain but not feel pressurised into buying immediately.

There have been improvements in the Open Market HomeBuy scheme and the introduction of other shared equity schemes which new buyers will benefit from.

FirstRungNow.com has echoed the comments and said that young professionals could benefit in the next few months as lenders look for less risky clients. The lenders aren’t necessarily deterred by people being credit averse or being in debt in spite of the market conditions, because with a professional or graduate mortgage they can hope those debts will be paid off.

FirstRungNow.com concluded that mortgage lenders are keener to lend those types of mortgages.