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Category : Residential

Date : 29 July 2008

Mortgage_confusion_and_funding_shortages_'hindering_FTBs'

Confusion over mortgage products and a shortage of affordable deals is hindering first-time buyers (FTBs) looking to get a foot on the housing ladder, it has been suggested.

The Homeowners Advice Centre believes some mortgage providers are capitalising on people's ignorance of the "archaic" homebuying process to charge "extortionate" fees.

Spokesman Al Elliott said more information about the process would be useful to buyers to help them understand what they are paying for and where their money is going.

But he added that confusion is only part of the problem, as the "shortage of relevant mortgage products" is what is essentially locking first-time buyers out of the market.

Research from the Royal Institution of Chartered Surveyors highlighted the financial problems facing those looking to buy their first property.

It revealed that a first-time buyer couple earning £27,516 after tax would have to save more than 100 per cent of their joint take home pay to amass the £27,738 needed for a deposit, fees, stamp duty and other costs associated with home purchasing.


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