It is getting harder for first time buyers to get onto the property ladder, after the Bank of England increased interest rates today.
The base rate is to rise to the five-year high of 4.75%, so, first time buyers are going to pay £500 more per year for a mortgage for an average property.
Helen Adams, MD of first time buyers' information and advice site, FirstRungNow.com, stated that the situation is of no surprise .
This is of course going to impact on first time buyers who take out massive loans to buy their first home.
Moneysupermarket.com figures show that, as average house prices are £200,000, a person taking out a 100% mortgage will have to fork out an extra £499.92 per year in repayments after the rise in base rate.
As soon as the house market shows signs of recovery, mortgage repayment costs are increased.
Mortgage lenders and the government ought to do more for people struggling to get that first foot on the property ladder .
A FirstRung poll highlights that 68% of would be first time buyers consider that small interest rate changes genuinely affect first time buyers, with 95% of them thinking that the government ought to do more by the way of supplying more affordable housing.
It is possible for would be first time buyers to spread their costs by co-buying with family , friends and or go into a shared ownership.
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First Rung of Property Ladder Diffucult to Get on To
Tue, 08 Aug 2006
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