Repossessions least likely for first-time buyers
May 13, 2008 by admin
Filed under News, News-Mortgages
The operations director of Firstrung has said that first-time buyers are the least likely group to have their homes repossessed under the current economic conditions.
Paul Holmes said this group is unlikely to face the same difficulties repaying their mortgages as families who have recently upgraded to larger houses.
First-time buyers have tended to take out mortgages that are “very manageable”, with the average loan being £115,000 over the past two years.
In contrast, buyers with mortgages in excess of £250,000 on a four or five bedroom property are likely to have “real problems”, Mr Holmes warned.
Mortgage possession claims, the first stage of the repossession process, increased by 16 per cent in the first quarter of this year, according to statistics from the Ministry of Justice.
“First time buyers who have recently climbed onto the first rung [of the property ladder] are least affected by the problems than any other buyer group,” Mr Holmes commented.
