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July 5, 2018
41% don’t think they’ll own a home
Almost half of young people don’t think they’ll ever become homeowners as they’ll struggle to get a mortgage, according to the latest research from the Building Societies Association. The gloomy data shows that while 48% of non-homeowners aged 25 to 34 want to get on the property ladder, 41% aren’t confident they’ll be able to.
Just over three quarters (76%) say they will find it difficult to secure a big enough deposit, while 46% are struggling to access a large enough, or even any, mortgage deal and 43% are worried about being able to afford their mortgage payments.
And it seems they may be right to be worried, as the percentage of 25 to 34-year-olds who own their own home has reportedly decreased from 40% to 33% over the last 10 years. What’s more, our own research released earlier this year found nearly three in four non-homeowners want to own their own home one day but affordability issues are preventing them from doing so – with 66% claiming property prices are too high, 58% struggling to save a deposit and 31% experiencing difficulty in getting a mortgage.
Paul Broadhead, head of mortgage & housing policy at the BSA, says: “It is stark and worrying how gloomy many young people are about their chances of future home ownership. With the average age of a first-time buyer standing at 33, this is the very group most likely to be considering buying [but] without a massive push to build more homes to overcome the deficit of decades it is hard to see that things will improve.”
The gap between the average rate for a two-year fixed rate and a five-year fixed rate is now the lowest it’s been since August 2013, latest figures from Moneyfacts reveal.
This means that borrowers looking to lock in for longer may only be charged 0.40% more on a five-year deal.
“With all the uncertainty surrounding a potential base rate rise, the average two-year fixed rate has been on an upward trajectory in the first half of this year, increasing from 2.35% at the start of the year to 2.52% this month,” explains Charlotte Nelson, finance expert at Moneyfacts.co.uk. “At the same time, the average five-year fixed rate has risen by just 0.05% since January, which has allowed the gap between the two to decrease dramatically.”
Fancy a new fridge? Some high-end garden furniture? Or perhaps a day out with the family? Well, move your mortgage to Halifax and you can have it. The lender is offering £500 to spend on its new mortgage gifts site to all first-time buyers, home movers, and customers who remortgage from another lender. Once the mortgage completes customers will be able to access the site and choose from over 40,000 items. Of course, a free fridge shouldn’t be a deciding factor when it comes to the biggest financial commitment you’re ever likely to make! Speak to a fee free broker to make sure you’re getting the best deal for you.
Check out today’s best mortgage deals. Click see more best buys to see the full range, or speak to London and Country today on 0800 073 2326
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