Buyers 'can capitalise' in 2008

19-Dec-2007

Mortgage broker John Charcol has said that a variety of factors are likely to provide first time buyers with a more favourable market in 2008.

The firm has pointed to lower interest rates, rejuvenated government shared equity schemes and other variables as evidence that new buyers will enjoy a better time of it next year.

The absence of a transaction chain will also benefit first time buyers as others struggle with the credit crunch, John Charcol added.

"[New buyers] should watch the market closely for a bargain but no longer need to feel pressurised to buy now in case they can't afford to so tomorrow," said Ray Boulger, technical director at the firm.

"The triple benefit of lower prices, lower interest rates and in most cases a higher income will significantly improve opportunities for first-time buyers.

"Recent improvements in the Open Market HomeBuy scheme, and the likely launch in 2008 of other shared equity schemes, will also help first time buyers," Mr Boulger added.

The comments come as Helen Adams from FirstRungNow.com has said that professional first time buyers could also benefit in the coming months as lenders look for less risky clients.

"The lenders aren't necessarily put off by people being credit averse or being in debt despite the market conditions, because with a professional or graduate mortgage they can hope those debts will be paid off," Ms Adams noted.

"The mortgage lenders are keener to lend those types of mortgages," the managing director concluded.

Inflation figures could hurry along rate cuts.


Mortgage rates fall following Bank cut.

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