First time buyers 'increasingly willing to take financial risks'

29-Jan-2007

First time buyers are more willing to take financial risks, new research suggests.

According to a study of over 2,000 people by Yorkshire Bank, 80 per cent of first time buyers would opt for a mortgage that extended beyond a period of 25 years, in addition to 61 per cent of first time buyers who would consider income multiples of five times their salary.

The survey also found that 28 per cent of those polled would be prepared to immediately offer the vendor's asking price in order to quickly secure a purchase.

"[First time buyers] are taking greater financial risks, with the majority now considering mortgages which are more than five times their income, or taking longer than 25 years to pay off," said Gary Lumby, head of retail at Yorkshire Bank.

"Saddling themselves with such huge debts isn't wise," he added.

To find out about all about different ways of financing a first home, see our section ‘Affording Your First Home’.

The survey also found that 23 per cent of parents are now so concerned about rising property prices that they believe their children will still be living at home until their early 30s.

Yorkshire Bank offers a range of products for first time buyers and repeat purchasers, including flexible payment and current account mortgages.

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