Getting the deposit is the hardest part

The largest problem faced by first-time buyers in the UK is scarping enough money together to get a good deposit ready to put down on a property, according to a new report.

Yorkshire Bank has researched first-time buyers to find that six out of ten people would consider taking out a mortgage which was five times their salary so they could get onto the first rung of the property ladder.

Bernard Clarke, spokesperson for the Council of Mortgage Lenders, says that over the last decade house prices have risen faster than people''s incomes but that this has usually been offset by lower borrowing costs and lower interest rates.

He said: "Our figures show that first-time buyers do borrow higher income multiples than they have done in the past.

"These figures also show that the overwhelming majority of people keep up with their mortgage repayments."

Therefore the biggest problem for first time buyers is the deposit.

As well as a deposit first time buyers need to make sure they can afford all the other costs that go along with buying a property including survey fees, valuation fees, VAT, removals expenses and Stamp Duty.


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