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Yorkshire Bank find first-time buyers' panic purchases

30 January 2007
First-time buyers desperate to get a foot on the housing ladder in a climate of seemingly unstoppable price growth are increasingly willing to take higher financial risks, Yorkshire Bank claims.

Only 20 per cent of homebuyers would hesitate to buy a mortgage which took over 25 years to pay off, the bank's research revealed.

Over a quarter (28 per cent) would willingly pay over the asking price to secure their dream house immediately, while only two in five (39 per cent) would reject a mortgage costing five times their income.

"With the average house price nearing £200,000, this year may feel like the last chance saloon for first-time buyers," commented Yorkshire Bank's head of retail, Gary Lumby.

"To try get onto the property ladder now before prices are totally out of reach, first-timers are taking greater financial risks," he continued.

But "saddling themselves with such huge debts isn't wise as they could still be paying off their mortgage well into their sixties or even seventies", Mr Lumby warned.

A study from the Royal Institute of Chartered Surveyors last week found that first-time buyers were likely to be worst hit by rising house prices.

For more information about first-time buyer mortgages, click here.

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