Mortgages Now 50% More Affordable
A new survey conducted by the Halifax seems to suggest that investing in property is now more affordable than it was in 2007.
Triggered by appetisingly low property prices and interest rates, the average mortgage payment now accounts for only 28% of a first time buyers disposable income, compared to 50% three years ago.
This supported by the governments recent decision to increase the Stamp Duty Threshold for first time buyers to £250,000, means that now 94% of first time buyers are exempt from having to pay stamp duty fees.
However, despite all signs seeming to indicate that mortgage payments are more affordable, over 50% of first time buyers during this survey cited being ‘unable to afford a mortgage’ as their primary reason for not being able to invest.
Evidence which is clearly proven in Halifax’s statistics…
Compared to three years ago, the number of first time buyers climbing onto the property ladder during the first half of this year has halved to just 94,600.
Yet it is easy to see why.
Expected to put down bigger deposits and have a squeaky-clean credit record, stricter lending criteria since the recession has made many lenders reluctant to give out mortgages, preventing thousands of first time buyers from being able to take advantage of this investment opportunity.
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Tags: first time buyers, investing in property, property ladder, property prices
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