The Mortgage Advice Bureau (MAB) has found that, despite the recent Base Rate cut, times are still proving tough for first-time buyers. In response MAB has issued tips for first-time buyers to consider when pondering a property purchase.
These tips include saving a substantial deposit, maintaining a clean credit record and considering buying with a friend or sibling. Other recommendations include opting for a fixed rate and allowing for a lodger in the property to provide a steady income.
Brian Murphy, lending manager at MAB, realised the need to increase first-time buyer activity in the market. “First-time buyers form a vital group of homebuyers and lenders are keen to attract their business,” he said.
“Although the prospect of getting on the housing ladder may appear daunting, there are many opportunities for first-time buyers to ease into the buying process.”
Murphy went on to add: “Finding the most appropriate mortgage can make all the difference. To broaden their options, the best thing a first-time buyer can do is try and save as large a deposit as possible as this will provide access to a wider variety of cheaper rate deals.”
Harry Katz, principal of Norwest Consultants, said: “My advice would be to look round at similar properties and see how much it is to rent. If it works out less than a mortgage then that may be the best course of action.”
