People 'wait before getting a mortgage'
Published On 11 August 2007
People are having to wait longer before they can afford to get a mortgage and buy a home, new research suggests.GE Money Home Lending found that the average age at which someone in the UK gets a mortgage and onto the property ladder is now 34. In 1977, the typical age of a first-time buyer was just 27.
One of the main reasons people have to wait to buy a home is the fact that house price inflation has increased 1,436 per cent over the 30-year period.
"Affordability is clearly a major issue and an issue which is here to stay, as house prices continue to create the biggest challenge for future first-time buyers," commented Gerry Bell, head of mortgage marketing at GE Money.
In addition, the report highlighted the fact that there has been a change of attitude in those looking to purchase a home. Previously, the desire to live with a partner and children was the main motivator for getting a mortgage and buying a house.
Now, however, people want to own a property as it gives them a sense of worth and independence.
"What has to be acknowledged is the fact that younger people are increasingly choosing to reject the more traditional path of family and community and choosing independent living and experience.
"As this report highlights there are consequences to this - such as affordability challenges and increasingly older first time buyers and families," Mr Bell concluded.
Recently experts suggested that first-time buyers were having to commit so much money to their mortgages that they were unable to afford to carry out the home improvements they would like.
