First Time Home Buyers increasingly Precarious Over Debt

A Report published by the Council of Mortgage Lenders (CML) has revealed that first-time home buyers’ share of the market has fallen to 34%, its lowest level in three years. The report also showed that the total number of mortgage advances actually increased by 7% in the month of July, although experts warned that the market remains ‘very weak’.

Mortgage lending remains constrained, particularly for first-time buyers, as lenders limit their exposure to a potential future house price declines by asking for large deposits. However, some experts believe that the large deposits required by first time buyers, 24% on average, simply means that many are swapping high-street debt for debt owed to friends and family.

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