At Last Help May Be At Hand For First Time Buyers

Even with a deposit many of Britain’s young people are still struggling to buy homes.

According to The IFS (The Institute for Fiscal Studies) around 40% of young adults are struggling to buy the cheapest of homes and that’s even with a 10% deposit.

The Institute for Fiscal Studies went on to report that house prices in England have risen by 173% over the past two decades and set that against average pay increases of just 19% over the same period for 25-34 year-olds – you can see the problem.

Back in the halcyon days of 1996, 93% of those who’d managed to save a deposit and borrowed up to four and a half times their salary could purchase a home. However, by 2016 that percentage had fallen by approx. one third.

Additionally, the reduced spending power of young adults and rents rising from an average £140.00 to £200.00 per week has made saving for a deposit an almost impossible task for many.

Sadly, this means that many young people cannot borrow sufficiently to afford even the cheapest of homes in their area let alone purchasing an average priced one. This has also led to the inequality felt by young people when comparing themselves with their older generations.

The IFS believes the government needs to radically encourage an increase in the housing stock and lessen the planning restriction for development within the Green Belt. 

However, we all know that the cogs that drive government policy can be very slow moving.

We believe that a positive and immediate solution to the issue could be that some lenders are offering more generous affordability assessments. At True Cost Mortgages, we have access to them all.

With lenders becoming more flexible with their criteria means that some can also accept gifted deposits from family members.

We also have a selection of lenders who can allow deposits to come via additional security on family members’ mortgage free homes.

Get in touch with us to find out how we may be able to help you get onto the property ladder.

 

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