Alliance & Leicester's new first-time buyer research revealed that 36 per cent of those planning to make their first property purchase in 2004 fear panic buying and for good reason, with 12 per cent of new homeowners saying they regret buying their home.
Inability to afford the repayments was the second greatest fear for first-time buyers, with one in five saying this was their biggest fear. A&L suggested this increased the need for careful budgeting, good advice and upped the value of fixed rates for this group. Getting into negative equity was the main worry for 18 per cent of first-time buyers, with 11 per cent believing property prices will drop, and not being able to afford the upkeep of their property (repairs to roofs, windows, etc) is a concern for 7 per cent of buyers.
Paul Cooper, head of mortgages at Alliance & Leicester, said: “While some buyers may feel pressure to buy their first home, they should ask themselves two questions - can they afford it and do they want to live there? If they stick to these two basic questions they won't go too far wrong.”
