Friday July 18, 09:43 AM
First-Time Buyers Abandon Market
By Sky News
Three-quarters of potential first-time buyers are abandoning plans to get on to the property ladder due to the current housing market downturn. Around 74% of people said they were putting plans to buy their first home on hold due to the current
conditions in the housing and mortgage markets, according to foreign exchange group Moneycorp.
A third of those questioned also said they had tried to buy a home during the past six months, but had been refused a mortgage.
The credit crunch has caused lenders to tighten their lending criteria, with 100% mortgages disappearing and 95% ones becoming increasingly scarce.
Most mainstream lenders are now demanding deposits of at least 25% in order for borrowers to qualify for their best rates.
Around 44% of first-time buyers said they were now seriously considering buying a property abroad and continuing to rent in the UK in a bid to take advantage of cheaper house prices overseas.
Spain is the most popular choice for people considering this option, followed by France and the US.
Marc Morley-Freer, Moneycorp spokesman, said: "The fact that so many buyers are prepared to get their first taste of homeownership in a foreign land speaks volumes for the state of today's domestic market conditions."
:: OnePoll questioned 500 first-time buyers during May.
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