First-time buyers make sacrifices to afford mortgages
Published On 21 June 2007
More and more young people are keen to get a mortgage and get themselves on the property ladder, new research suggests.Lloyds TSB's survey found that one in ten people between the age of 18 and 24 have decided not to go to university in favour of saving to afford a mortgage and deposit for their first home.
Furthermore, the data shows that young people are increasingly prepared to make financial sacrifices early in their life it will allow them to purchase a property as quickly as possible. One in five people in this age group said that they abandoned their preferred career in favour of a better paid one that they do not enjoy.
On top of this, over half (54 per cent) admitted to living at home to save money and a third have put travel plans on hold until they have a mortgage.
"The fact people are willing to forgo their education highlights the importance of homeownership to the younger generation," commented Alison Burns, the mortgage sales director at Lloyds TSB.
"However, these extreme measures may not always be necessary, as the research shows a number of misconceptions about the modern housing market.
"Mortgage providers are becoming increasingly flexible to accommodate the changing circumstances of first time buyers, so many of the old mortgage myths no longer apply."
Recently, the Council of Mortgage Lenders (CML) revealed that first-time buyers now have to spend 18.7 per cent of their salary on the interest on their mortgage.
