Paul Holmes, chief executive at Firstrung, said that joint ownership schemes should be avoided unless they were taken on with a long-term partner.
Holmes suggested that if young couples were unable to afford to buy a property, they should ‘sit out the current market,’ adding that by doing so they could try to save as much as possible in the meantime to put towards a deposit.
“It would be reckless to enter into an unaffordable mortgage pinning hopes on future house price growth,” he explained. “First-time buyers should make their decision on affordability alone, perhaps taking a bit of time out to consider stress- testing their payments ‘could I afford the payments if they increased by 20 per cent?'”
Holmes also revealed that research has shown that more and more parents are providing financial assistance to their children looking to get onto the property ladder.
He suggested that some parents were acting as a bank to the their children, especially as the first-time buyer market was particularly problematic for couples living in London.
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