FTBs `should be prepared to make sacrifices to secure a mortgage`

2 October 2008

First-time buyers (FTBs) who are serious about getting on to the property ladder must be prepared to make sacrifices in order to secure a home loan, an expert has said.

Commenting on the issue, Michael O`Flynn, content editor at FindaProperty, suggested that luxuries such as eating out and taking holidays abroad may be "worth missing out on" for a couple of years in order to save sufficient funds.

He said: "In the current economic climate where mortgage lenders are tightening their loan criteria, it`s highly unlikely that first-time buyers will be able to secure a mortgage without a minimum deposit of ten per cent of a property`s value."

Mr O`Flynn added that the most recent property price reports from Nationwide and Halifax put the average price of a home at £164,654 and £174,178 respectively.

Given the restricted lending conditions, FTBs would have to save between approximately £16,500 and £17,500 in order to secure a mortgage, he concluded.

Research conducted recently by the Co-operative Bank and Places for People found that only nine per cent of people questioned were not prepared to make sacrifices to buy a property, compared with 57 per cent last year.

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