First-time buyers 'will have an advantage'

Date:Tuesday 30th December 2008
Author: Max Freedman

Those looking to purchase a property for the first time may be in a good position to do so as house prices continue to fall, thanks to their deposits.

This is according to Paul Holmes of Firstrung, who said that a substantial deposit in the bank saved up by people in regular work will mean that repayments will be lower and buyers will be able to cut a good part off the cost of their house.

"Once they are ready to enter the property market they will get so much more 'bang for their buck', in terms of what they'll be able to buy. Because they'll have saved up a decent deposit the mortgages are going to be [relatively low]," he commented.

Mr Holmes added that first-time buyers could also benefit from the cut in interest rates in order to enjoy cheaper mortgages.

Figures released recently by the Council of Mortgage Lenders showed that there were 2,000 more mortgage approvals for first-time buyers in October than there were in September.

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