First-time buyers urged to 'stay out' of mortgage market
News Category: Industry News
Published: 03-Jul-2008
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First-time buyers should "sit out" of the mortgage market during the current climate, according to Firstrung.
The house purchase advisory firm urged those considering a house purchase to sit tight in residential lettings and save until the mortgage market has corrected itself.
While of concern to estate agents, the comments are likely to be a boost for lettings agents which may see more tenants playing it safe by continuing to rent.
Paul Holmes, operations director at Firstrung, observed that as long as prices are falling those in residential lettings are not missing out.
He added: "You can sit there comfortably realising that if you haven't bought that's fine because as prices correct your purchasing power is going to grow."
Tenants may also need to rent on the long-term in order to save enough of a deposit for a house purchase.
According to theCouncil of Mortgage Lenders (CML), the average first-time buyer now needs a deposit of around 13 per cent to secure a mortgage for a property.
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