Yorkshire Bank’s Homebuyers survey of over 2,000 people showed 20 per cent would avoid a mortgage that took longer than 25 years to pay off and 39 per cent would rule out a loan five times their income.
The report also revealed more than one in four FTBs would pay over the asking price, compared to 12 per cent of existing homeowners, while nearly 40 per cent would take out an interest only mortgage to try to keep their repayments to a minimum.
Rod Murdison, proprietor of Murdison & Browning, said it was up to brokers to guide FTBs. “They need to understand some sort of deposit is better than none. I can understand why FTBs take risks. Whether it’s realistic or not, they assume their income will rise, the property value will go up, but the mortgage will stay the same.”
Gary Lumby, Yorkshire’s head of retail, said: “FTBs need to be mindful that January’s rise was so unexpected it may take time for the market to react. If things ease, it could take longer to make a profit on the property.”
