Abbey first time buyers turn to family
August 14, 2007 by admin
Filed under News, News-Mortgages
First-time buyers (FTBs) are increasingly turning to brokers rather than friends and family for mortgage advice, Abbey said today.
According to research from the lender released today, 23 per cent of homeowners consulted those close to them while buying their first home – compared with 13 per cent who asked a broker for advice.
However, 28 per cent of the first-time buyers of today – those in the 25-34 age group – said that they used a broker: the largest proportion across the demographics. This could signify an increasing dependence on professional rather than personal mortgage advice.
By way of comparison, just two per cent of OAPs consulted a broker over their first property purchase.
Managing director at Abbey Ricky Okey said that the research was “promising”, because it showed “a shifting attitude of young first-time buyers who are waking up to the benefits of seeking advice from intermediaries.
“Brokers can build on this changing attitude to become a positive driving force in the first-time buyer market.”
New buy-to-let trend
February 5, 2007 by admin
Filed under News, News-Mortgages
A new trend is developing in the buy-to-let market, with people buying homes and renting them out then using the money to pay their own rent.
Many first-time buyers are finding it so difficult to buy a property in the south, and in particular London, that they have to rent, says website SpareRoom.com.
However, they feel as though they are wasting money this way, so they buy a house in a cheaper area and rent it out.
The rent they receive from this property then goes towards paying their mortgage and their own rent but, in the mean time, they are buying a home.
“We’re seeing a definite increase in young first-time buyers taking on a bigger mortgage than they can afford on their own and renting out a second room to pay for it,” said Rupert Hunt, founder of SpareRoom.
“Not everyone wants the risks that come with joint ownership. Until recently it has been tricky for people to get a big enough mortgage to buy somewhere with a second room to rent out, but things are getting easier.”
In response to this growing trend, many mortgage providers are now offering loans which take into account income earned through renting another property.
