PricedOut.co.uk rep criticises Zoopla.co.uk mortgages research

Date:Monday 22nd November 2010
Author: Susanna Kavka

A recent study by Zoopla.co.uk has been criticised by a mortgage expert from PricedOut.co.uk, who suggested it does not pass the "real-world test".

The spokesperson responded to a report by the website that said buying a house is more cost-effective than renting in 80 per cent of urban areas in Britain.

According to the PricedOut.co.uk representative, this study fails to take into account several long-term costs and concentrates only on the interest charged by lenders.

"Most people, wisely, buy their home with repayment mortgages and have to factor in repair and maintenance costs, and that ups the costs of ownership considerably," he noted.

In his view, reports such as the one produced by Zoopla.co.uk are likely to frustrate potential first-time buyers, who are finding it very difficult to secure funding.

He suggested one of the major barriers to signing a home finance deal currently is the high deposit requested in many cases, which is forcing many applicants out of the market.