Mortgages becoming more affordable for first-time buyers

First-time buyers looking for the best mortgage rates will be interested to hear that the market is at its most favourable for 12 years, according to the latest Halifax first-time buyer review.

The research carried out by Halifax showed that the proportion of disposable earnings used for mortgage payments by a first-time buyer stood at 27 per cent in September 2010.

This figure is the lowest since December 1998 and around half of the peak level of 50 per cent in September 2007.

Martin Ellis, housing economist at Halifax, said: "The 'noughties' were a difficult period for many looking to get onto the property ladder. The substantial rise in house prices over much of the decade prevented many potential first time buyers from entering the market."

He added that affordability for first-time buyers had improved significantly in the last three years and with lending criteria beginning to relax there are signs of improvement.

Vernon Pethard, managing director of newhomesforsale.co.uk, recently revealed that the company had 2.5 times as many enquiries from first-time buyers in 2010 than in the previous year.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-12-29 13:08:30 © Moneyextra.com