New research has found that the average homebuyer has to wait 3.2 years to get on the property ladder.
According to Gocompare.com Mortgages, high property prices in the area they want to buy (22%), getting enough money together for a deposit (18%) and the associated costs of buying a property and moving (11%) are the biggest obstacles to their plans.
Other barriers include a lack of availability of the type of property in the area they wish to live (11%), job or income insecurity (10%) and the ongoing costs of running a home including mortgage repayments, utility bills and council tax.
While half of Brits are considering buying a home or trading-up the property ladder, six out of 10 can’t see that they’ll be in a position to do so in next 12 months. Two in 10 Brits are worried they may never afford to buy or move home.
The survey found that other difficulties varied considerably with age. For example, 45-54 year olds cite a poor credit history or credit score (14%) and job/income insecurity among their top three barriers to buying or moving home. For those in the 55-64 and 65+ age brackets, the main obstacle they face is a lack of availability of the type of housing they wish to move to in the area they want to live in.
Matt Sanders of Gocompare.com Mortgages said: “Affordability is a big concern for both first-time buyers and those wishing to move-up the property ladder. But there is some good news. Recently there has been a resurgence in the number of lenders offering low-deposit mortgages. Most lenders now have a mortgage product aimed at homebuyers with a deposit of 10% of the purchase price of their property and, subject to stricter eligibility criteria, some lenders offer 5% deposit mortgages.
“Buying a home and repaying a mortgage will probably be the biggest expense most of us make – so it’s important to do your research to make sure you get the best deal for your circumstances. The obvious advantage of a low-deposit mortgage is that you’ll be able to buy a home or move sooner, but, interest rates and fees for these products tend to be higher than for mainstream mortgages. So, if you are concerned about the ongoing costs of homeownership, then it might be better off saving for a higher deposit.”
