Couples 'must save year's to pay for deposit
Couples buying a first home must save the entirety of their annual earnings for a deposit, it has been claimed. A couple must put aside £27,738 to cover the deposit, stamp duty and legal fees. This is more than the total annual earnings after tax of 25% of UK couples.
In 1996 the average couple needed to put aside just 21% of their annual income to fund the cost of a first house purchase. Access to the housing market has deteriorated as the credit crunch has taken hold of the mortgage lender sector. With mortgage approvals declining, the picture does not look like improving in the latter part of 2008 and first-time buyers will find their path to home ownership increasingly blocked.
News of the study's findings comes as separate research conducted found that the average rate on a two year fixed rate mortgage currently stands at 7.07%.
In 1996 the average couple needed to put aside just 21% of their annual income to fund the cost of a first house purchase. Access to the housing market has deteriorated as the credit crunch has taken hold of the mortgage lender sector. With mortgage approvals declining, the picture does not look like improving in the latter part of 2008 and first-time buyers will find their path to home ownership increasingly blocked.
News of the study's findings comes as separate research conducted found that the average rate on a two year fixed rate mortgage currently stands at 7.07%.
Labels: base rate, below market value, property investing
posted by Juswant & Sylvia Rai at
4:28 AM
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