Insurance News Archive

First-time buyers 'will get more value for money'

First-time buyers will get much better value for their money when they are ready to enter the housing market, according to an expert.

Paul Holmes, chief executive officer of Firstrung, says low-rate mortgages are going to assist first-time buyers in safe employment who are able to save up a deposit, as they will get "more bang for their buck".

He adds that "[as] interest rates approach the realms of one-and-a-half to two per cent then the possibility is that they'll have a four per cent mortgage," which is an improvement on the six per cent mortgages previously offered.

According to figures from the Council of Mortgage Lenders, the number of loans given to first-time buyers increased to 15,400 in October, up from 13,400 in the previous month.

The average house price for October was £165,529, a decline of 1.5 per cent compared to September, with prices now at a similar level to summer 2006.

29 Dec 2008