Rising house prices in the UK have made it very difficult for first time buyers in the UK. The ratio of house price to earnings has risen significantly. With average house prices rising to over £100,000 many feel it is hopeless to even try and be able to buy. However despite the inflated house prices it still makes economic sense to try and buy a house if at all possible. The good news is that in recent years the deregulated mortgage industry has become increasingly competitive and flexible in offering different types of mortgages which may enable first time buyers to get onto the property ladder.
Ideas for: first time buyers getting their mortgage
On a personal note I was very fortunate to have a generous loan from my parent. This enabled me to be able to get a self certification mortgage. The Mortgage payments on a £138,500 mortgage are about £850 a month. In Oxford to rent is about £750 a month so its not much more. I’m hoping in the future inflation and real wages will make this more manageable, but soon I will be looking to find a better mortgage deal.