Thursday 17th April 2008
First-time buyers (FTBs) could be facing a delayed entry on to the housing ladder due to the withdrawal of accessible mortgage products from the market.
Such is the assertion of credit reference agency Equifax following the publication of the results of its recent survey.
Nearly half (47 per cent) of FTB respondents said that they have put off purchasing a property in light of the reduced number of mortgage deals available.
More than a quarter (28 per cent) have insufficient funds to put down the necessary deposit, while 18 per cent blamed the delay on a lack of regular income with which to meet monthly repayments.
The news comes following claims that many homeowners could be facing increased monthly repayments when emerging from fixed-rate deals into a climate of elevated interest rates.
However, Equifax reports widespread support for the introduction of longer fixed-rate periods - including up to 25 years.
External affairs director Neil Munroe says: "With current economic uncertainty at the front of their minds, 91 per cent agreed ... that more should be done to introduce more flexible and affordable long-term fixed-rate mortgages."
But he notes there is little "room for celebration" among FTBs despite the recent lowering of the base rate carried out by the Bank of Englands monetary policy committee.
This is due to the fact that those with no deposit to lay down can no longer obtain a mortgage with a 100 or 125 per cent loan-to-value ratio, the organisation asserts.
Equifax recently suggested that many individuals could be wise to check their credit profile regularly as even old records can be of use to identity fraudsters.
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