First time buyers told to cut lifestyle luxuries

10-Jul-2007

Cutting out so-called lifestyle luxuries is the key to the next generation of potential homeowners being able to afford their mortgages, it has been advised.

Property firm Chesterton has said that simply cutting back on small treats such as meals out or short breaks will mean homeowners remain comfortable, despite Thursday's interest rate rise pushing rates to their highest level for more than six years.

The advice is supported by Citywire columnist Richard Lander, who notes that spending on leisure goods as a proportion of income has risen from 12 per cent in 1984 to 18 per cent nowadays.

"Buyers already sensitive to the rate increases have adjusted their lifestyles and remain firmly focused on the inevitable need for home ownership," commented Chesterton head of sales Adam Stackhouse.

Consumers who start to feel the pinch of these recent rate rises have many other 'lifestyle luxuries', such as dining out, trips to the theatre or holidays, that can be cut back long before mortgage repayments begin to be threatened," Mr Stackhouse added.

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