30
Apr
Credit crunch 'could benefit' first-time buyers
First-time buyers could actually benefit from the credit crunch, a
spokesperson for Moneyfacts.co.uk has said.
Andre Hagger suggested that with savings rates currently at a
seven-year high and property prices falling, those looking to get
on the housing ladder could bide their time and secure themselves a
good deal.
"With the current levels of uncertainty and volatility surrounding
the mortgage industry and the housing market, maybe it's worth
sitting on the sidelines and saving that ten per cent deposit until
the stormy clouds blow over," he said.
He noted that although property prices have trebled over the past
decade, they could fall by 15 per cent in the next 18 months.
Saving for the next year and a half would also give them the
opportunity to take advantage of some of the great savings rates
around, with rates of over 6.5 per cent gross "easily
attainable".
However, first-time buyers may still be affected by the diminishing
number of mortgage products on the market - according to
MoneyExpert.com's research, one in five fixed and variable
mortgages now come with a maximum loan-to-value of 75 per cent or
less.
