Print friendly version 18 Apr 2008

Buyers without deposits forced to hold off

Nearly half of first-time buyers have put off buying a home due to the recent withdrawal of 125% and 100% mortgages, according to credit information provider Equifax.

Research from Equifax found that 42% of first-time buyers have less than a 5% deposit and 4% have a deposit of 20% or more.

Of those not planning to buy a property in the next year, 28% said it was because they couldn’t afford the deposit, while 18% felt they wouldn’t be able to afford the monthly repayments.

Neil Munroe, external affairs director at Equifax, said: “Even for those first-time buyers that have the necessary deposit, good deals are going to be hard to find, but the lower rates should ease the pressure in the market a little. It looks like a tough year ahead for those looking to enter the property market for the first time, but by keeping a close eye on their finances and shopping around they should still be able to get a foot on the property ladder.”

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