First time buyers helped by market confidence, says expert

15-Mar-2012

First time buyers helped by market confidence, says expert
Government pressure, coupled with increasing confidence in the property market has contributed to a better situation for first time buyers, according to one expert.

"Banks are now more confident that property has been through the worst period now and prices are stabilising in a lot of areas," said Parallel Investment Management's Tim Lambert.

The head of investment property added that "there is huge pressure from the government for banks to lend to individuals".

This was aimed at allowing a movement towards more conventional levels within the property market, he said.

Several days ago, we reported that the government recently announced an increase in the proportion of a property's price that buyers can borrow, thanks to mortgage indemnity scheme NewBuy.

However, Mr Lambert added that first time buyers "need to plan for the future and not just be able to pay now".

They must remember to factor in possible increases in interest rates and work out whether they will be able to pay for a mortgage in the longer term.

Buyers should imagine the amount they are already paying their bank could be coupled with three per cent interest rate, he suggests.

"Financial markets are still incredibly turbulent," he stated.

Posted by Helen Adams

There is a vast array of mortgages for first time buyers so seek good advice.

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