I Dont Stand a Chance

Getting a mortgage has become more difficult for first-time buyers in recent years, thanks to rising house prices. Even now, with residential property values set to stabilise or even fall in some areas, first-time buyers are instead faced with more difficulties when trying to secure a mortgage.

Perhaps you haven’t managed to save a decent deposit yet, or maybe you’re worried you might not be able to afford a mortgage on your income alone. Even if this is the case, there are options open to you. This includes sharing a mortgage, guarantor mortgages and even government schemes for key workers or first-time buyers facing affordability issues.

Getting your first mortgage… It is worth thinking carefully before you commit to a property or a mortgage – is now the right time to buy for you? Would it be more sensible to wait and save for a little longer? There is always time!

Nearly two thirds of first-time buyers find it impossible to get a mortgage through their broker, figures show today.

Some 58% of young house hunters could not secure a home loan in the last three months of last year as banks rationed lending, according to a survey from the Intermediary Mortgage Lenders Association.

Peter Williams, executive director, said only people with significant savings to put down were managing to get their feet on the housing ladder.

He said: ‘The first-time buyer end of the market has been hit extremely hard by lenders tightening their requirements. For youngsters without a substantial deposit, the only alternative is renting.’

The average deposit now required is 22%, the highest in 34 years.

As a relatively young person, its interesting, in times of economic uncertainty, to find out what other people feel as to how this current situation will affect them in the long term. After speaking with several friends, who are similar financial positions, here are the small conclusions.

“I will never be able to afford the deposit on a first time buyer mortgage” – Start saving pal, it will only get harder as you get older, or you could try your luck at the lotto every week. Switch and Save bank accounts are a great way, of saving money even if its a relatively small amount, you never know the advice your given whilst switching could be invaluable in your search for either the deposit or the change you need financially

“I do not earn enough money to support myself” – Either make more money, or live in your means.

“I have no savings to speak of, therefore, when I lose my job I’m in trouble” – Be careful with your last pay packet, it could be your last for a while. This however is the best time to “do the jobs you have always wanted, but couldn’t” For example male escort/stripper.

Its awful really, when you come to think about it. I wasn’t ever really aware of what happened in money circles until recently – my conclusion; something isn’t right.