First time buyer mortgage candidates are quickly finding that their loans are coming at a premium cost. When you consider the rise in interest rates, the need for a larger down payment and higher closing costs, many are finding that their first time buyer mortgage is simply too expensive. While there is hope that this will change in the future, right now, getting a first time buyer mortgage is not only difficult, but for many consumers, it may also be impossible to afford. These consumers are being advised to wait and see what the housing market will do before applying.
‘Even at 90 per cent, the number of loans are limited and you will have to pay a premium on the rate,’ says Melanie Bien of Savills Private Finance.
‘First-time buyers will increasingly have to return to old-fashioned values and save up for a deposit. Unlike in the past, where the danger of saving was that you would be priced further off the housing ladder, the situation has changed; with prices falling, you could argue that there is more reason than ever to hold off to ensure you don’t pay more than you need to.’
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Related reading: First Time Buyer Mortgage
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