First-time buyers urged to be disciplined with saving

13-Feb-2009

Britons saving up for their first property need to be disciplined with their saving, an expert has suggested.

David Kuo, head of personal finance at money website fool.co.uk, wants first-time buyers (FTBs) to be aware of the financial implications of getting on to the property ladder.

He explained that first property buyers are taking on a debt of roughly about eight times their income to buy a house in the current economic climate.

This has led some homebuyers to consider alternative financial solutions such as shared ownership and shared-equity schemes in recent years.

Mr Kuo said: "There is no shame in renting accommodation, but we do have a homeowner culture instilled in us."

His comments come after research by Abbey Mortgages suggested that more than one million Britons aged between 18 and 24 moved back in with their parents last year so they could save money.

According to research by the Council of Mortgage Lenders, FTBs on average had to pay a deposit of 22 per cent in December - the highest proportion recorded in the study's 34-year history.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

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