First time buyers still having to put up with renting
April 4, 2009 by admin
Filed under News, News-Mortgages
For many years many non-homeowners that simply couldn’t afford to buy a home due to ten years of rocketing property values have been waiting in the wings for property prices to start coming down again, over in the latter part of 2007 many were delighted to find that this was indeed happening at last.
For a large number of aspiring property owners this was at last their chance to get out of rented accommodation and get their foot on the property ladder.
However, this was not to be, as at the same time that house prices started to drop the global credit crunch swept across the nation, and suddenly lenders that were practically begging people to take on finance were no longer willing to offer loans such as mortgage to many.
With liquidity drying up and lenders becoming increasingly cautious would be first time buyers suddenly found themselves in yet another difficult situation – the fact that many couldn’t get a mortgage.
Recent reports have indicated that whilst a year and a half has passed since the onset of the credit crunch, and house prices have continued to plummet over that period, many first time buyers still stand little or no chance of getting their hands on a mortgage loan because of the ongoing difficult credit conditions.
This means that many will still be forced to continue renting accommodation or living with friends and family, as they cannot afford to put down the high deposit that many lenders are demanding, thus being ineligible for affordable mortgages even though the base interest rate is now at its lowest level in the history of the Bank of England.
Tags: large number, year, bank of england, housing market, first time buyer
