February 15th, 2012 
admin 
Mortgage Calculator
Developers and homeowners alike are struggling to sell homes in general. The fact that people are struggling to either get the money together or get a mortgage sorted is one reason behind this, but first-time buyers are finding it even tougher than most to buy. Despite regularly working out what they need by reaching for the mortgage calculator, a lack of cash and, ultimately, reluctance on the part of people to sell to them are massive obstacles.
The current lack of first-time buyers can also be attributed to the lack of first-time sellers. Homeowners who presently live in their first property are struggling to acquire the means to move up to the second rung of the property ladder. This is down to a toxic mix of negative equity, being unable to find another property to upgrade to and not feeling up to stretching their finances.
Mortgage rates are at an all-time low, but the shortage of affordable properties on the market is making it difficult for first-time buyers. Many properties owned by prospective first-time sellers are generally smaller properties such as flats and inner-city Victorian terraces, which sometimes sell for under £100,000. Being unable to take advantage of low mortgage rates is leaving those looking for their first property incredibly frustrated.
As a result of low rates, living in a mortgaged property is becoming an increasingly attractive proposition for young families. Research by Halifax has shown that it’s cheaper to live in a mortgaged property than to live in rented accommodation. For example, you would only have to pay £600 a month to live in a three-bedroom house you paid for with a mortgage, while an equivalent property available for rent would on average cost £714, meaning that the average family would save in excess of £1,000 a year by mortgaging a new property right now.
While mortgages are cheap, finding the money to pay a deposit for a new property is another hurdle for first-time buyers to jump. Halifax found that the average first-time buyer deposit was an eye-watering £27,032, which is beyond the means of most people looking for their first property.
Even before economic problems began to plague the economy in 2008, young couples and families looking to buy their first home found it very difficult to do so. However, despite low mortgage and interest rates, a combination of factors relating to price and availability means that many prospective buyers continue to find themselves in limbo.
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