Woes of First Time Buyers
New figures from Nationwide show that higher house prices alone add £75 to a typical first time buyer monthly costs compared to last year. And interest rate increases bring this up to almost £120.
Meanwhile, locking into a fixed rate loan this time last year would have saved a typical first time buyer £170 to date, with further monthly savings of £50 at current mortgage rates.
Fionnuala Earley, Nationwide's Chief Economist, makes the point that as interest rates have increased to their highest level in over five years, the question of affordability again raises its head.
House prices alone rose by just over 10% in 2006 adding almost £14,000 to the cost of a typical first-time property, but three interest rate rises in six months add considerably more to the borrowing costs for this already struggling group.
Meanwhile, locking into a fixed rate loan this time last year would have saved a typical first time buyer £170 to date, with further monthly savings of £50 at current mortgage rates.
Fionnuala Earley, Nationwide's Chief Economist, makes the point that as interest rates have increased to their highest level in over five years, the question of affordability again raises its head.
House prices alone rose by just over 10% in 2006 adding almost £14,000 to the cost of a typical first-time property, but three interest rate rises in six months add considerably more to the borrowing costs for this already struggling group.
posted by ew at
11:28 AM
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