Affordability for first-time buyers 'has improved'

Posted: 20 Aug 2010 09:09:59 GMT

First-time buyers need to take advantage of lower interest rates and house prices, it has been suggested.

According to research from Halifax only 35 per cent of those looking to get on to the property ladder are making use of improved affordability.

Figures from the bank show monthly house loan payments as a percentage of income are almost 50 per cent of the level seen in 2007.

Commercial director for mortgages Stephen Noakes said it is important first-time buyers realise market conditions are more positive, despite the challenge of raising a large deposit.

"Affordability has significantly improved, meaning the amount of a typical first-time buyer's monthly pay packet that needs to be dedicated to their mortgage is now below the 25 year average," he added.

Mr Noakes also explained 80 per cent of those new to the property market are getting their loans approved.

Editor of What Mortgage Ben Wilkie recently claimed there is a place for capped mortgages.

 

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