First-time buyers advised to be cautious

Posted: 18 Feb 2011 13:45:42 GMT

A property expert has advised caution for those making their first move onto the housing ladder.

First-time buyers should be wary about investing in homes at the moment, a sector expert has warned, as the market is still in a precarious position.

Head of consulting at independent property investment consultancy Ducalian Timothy Lambert said that it is "a very uncertain time" for first-time home buyers.

Those taking their first steps onto the property ladder need to remain cautious, he stated, and also need to ensure they have complete understanding of the level of debt they are taking on by signing up for a mortgage.

Mr Lambert urged first timers to carefully consider two-year, fixed-rate mortgages, pointing out that buyers could get a shock when after 24 months their monthly payback rate rises sharply.

"If you buy now, make sure you can easily afford the monthly payment as it will not get any lower any time soon," he said.

However, research from Moneyfacts.co.uk recently showed that the number of mortgages available to people with smaller deposits, such as first-time buyers, is on the rise.
 

© Houseladder Ltd