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First time buyers forced to make sacrifices

28 March 2006
The majority of first time buyers (FTBs) have had to make sacrifices to get their foot onto the property ladder, according to new research.

Cuts to social life and holidays were taken in addition to extra work to allow FTBs the home that they want.

Research was carried out by mortgage broker Purely Mortgages, who claim that 62 per cent of buyers – 15.6 million people – said that they changed their lifestyle to afford a new home.

Mark Chilton, chief executive of Purely Mortgages, said: "It seems the UK will go to any lengths to maintain its love affair with home ownership and as house prices have continued to rise, people are adopting even more drastic cost cutting measures to get that first step on the ladder."

Many first time buyers are doing all they can to get into the housing market, with the Council for Mortgage Lenders saying last month that half of FTBs now get financial assistance from their parents to fund deposits.

In addition to funding a house through borrowing from parents, ten per cent took an extra job and 26 per cent took out a 100 per cent mortgage.

Worryingly, 11 per cent said that they had overstretched themselves when it came to borrowing for property. Worst for this were West Country residents, of whom 30 per cent said that they had borrowed more than they could afford.

Though saying that property has proved to be a good investment with strong growth, Mr Chilton warned that "people need to be realistic about what they can afford and what sacrifices they are prepared to make".

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