First time buyers 'should clear debt'

28-Sep-2006

Following a report from Alliance & Leicester revealing that 70 per cent of first time buyers are indebted to the tune of an average £5,860, first time buyers have been urged to clear their debts.

Stephen Leonard, director of mortgages at the financial services provider, said: "While buying a house can seem like a top priority, those looking to buy for the first time will find it worthwhile to pay off their outstanding debts first."

He added that although many first time buyers are saving for their deposit, some aspiring homeowners are not being as "financially frugal" as they could be.

The data also revealed that first time buyers expect to have saved for a deposit within two years.

However, research findings from the Co-operative Bank show that first time buyers may have to save for six years to achieve their deposit goal.

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