First time buyers 'choosing parenthood first'

06-Nov-2006

First time buyers are increasingly opting for parenthood before making their first step onto the property ladder, research suggests.

According to research by Alliance & Leicester, an increasing number of potential first time buyers are opting for parenthood as their priority, with around 23 per cent of parents still living in rented accommodation or in the parental home.

Of this 23 per cent of non-home owners, around 55 per cent do not feel able to afford their first property purchase.

"Although parental renters might be put off looking into buying a home because of the expense, they shouldn't think that it is always out of their reach," said Stephen Leonard, director of mortgages at Alliance & Leicester.

"More and more lenders are using affordability based lending, which allows them to assess how much an individual can afford … which is … more realistic and accurate," he added.

However, Alliance & Leicester believes that the rising number of renting parents is likely to increase as divorce rates continue to rise.

Alliance & Leicester is a UK-based provider of financial services, including mortgages and current accounts.

To find out which is the best first time buyer for your situation, contact a good mortgage broker.

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