First time buyers wait to see what happens with interest rates and house prices
According to recent report many potential first time buyers have decided against rushing into purchasing a property, and have instead decided to wait it out to see what happens with house prices and interest rates. Rumours about the possibility of house prices coming down along with the risk of interest rates rising – despite this month’s decision to keep rates on hold – have resulted in many first time buyers deciding to either stay with their families for a while longer or simply rent for a while until they can make a more informed decision on whether they can afford to purchase a property.
One first time buyer expressed her concerns over rushing into purchasing a home right away, and why she had decided to wait.
She stated: “I am desperate to get onto the property ladder, because I feel that the chances of ever getting my own place are getting slimmer and slimmer. But with all of these rumours about decreasing house prices and rising interest rates I want to see what happens before I make any long term commitment.”
First time buyers have experienced increasing problems over recent years, with soaring property prices and rising interest rates to deal with. This has meant that first time buyers, who have no equity from a previous property to put towards a deposit on a house, have had to borrow huge amounts to cover the cost of purchasing a property, and on top of this have had to cope with higher interest rates which means even higher repayments in their mortgage loan.
A number of first time buyers are also now turning to shared ownership, which means that they are able to part rent and part buy a property. This enables them to get their foot on the property ladder without over-committing themselves financially and without having to take on such a huge mortgage. They can then buy further shares in the property until they own 100% of the home.
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