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Abbey finds first time buyers get flexible about mortgages

29 June 2005
Confidence among first time buyers is no higher than it was last quarter, but there is greater flexibility in their approach to mortgages, Abbey has found.

According to Abbey's latest quarterly first time buyers' report, just five per cent of first-timers are feeling confident about being able to buy their first home in the next year - the same as three months ago.

However, a greater number of first time buyers are considering shared ownership and shared mortgages with friends and family as potential solutions to the problem, along with various other flexible options.

Just under one in three (29 per cent) would consider buying a shared ownership property through a housing association, Abbey found, whilst 27 per cent would consider buying a wreck to keep prices low, one in five would consider building their own home, and 18 per cent would like to buy abroad.

"Given the recent changes to stamp duty, it's disappointing that confidence amongst first-time buyers has shown no improvement," commented Barry Naisbitt, chief economist at Abbey.

"However, on a more encouraging note, our research also shows that they are willing to take a flexible approach to their housing finance and that, if the Bank of England did cut interest rates, this would give them a boost."

Just over a quarter (26 per cent) of first time buyers said they were confident that house prices would come down.

To find out more about first time buyer mortgages, click here.

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