With regards to long-term fixed rates for first-time buyers, is this not a little risky when their circumstances are likely to change enormously, especially if they are buying between the age of 20-25, over the next three to five years?
Unfortunately, it’s likely that couples may separate and therefore have a need to sell the property and incur redemptions, particularly if they haven’t lived together before.
On the other hand, they may decide to start a family – or have a family sprung upon them – forcing the need to move home. There’s a good chance that the lender they have fixed with won’t offer the multiples required.
Surely it’s better to look at products with shorter term redemptions providing the flexibility that most first-time buyers require?
Via e-mail
