New buyers can take advantage of the crunch
Tue 29th Apr, 17:30:32 BST
First-time buyers may find that the global credit crunch is of benefit to them.
Moneyfacts has stated that new buyers should wait for house prices to fall before entering the market.
Currently, as a result of the crunch, mortgage lenders require borrowers to save up a deposit.
However, Moneyfacts said that instead of taking out a loan now, potential buyers should save the cash and wait until they can use it to buy an even better property down the line.
"With the current levels of uncertainty and volatility surrounding the mortgage industry and the housing market, maybe it''s worth sitting on the sidelines and saving that ten per cent deposit until the stormy clouds blow over," said Andrew Hagger from the firm.
"If property prices were to fall by 15 per cent in the next 18 months, (which is conservative compared with some estimates), then those who are itching to get their foot on the housing ladder could benefit from a double whammy of very high savings rates and the falling cost of that elusive first property," he added.
Moneyfacts has stated that new buyers should wait for house prices to fall before entering the market.
Currently, as a result of the crunch, mortgage lenders require borrowers to save up a deposit.
However, Moneyfacts said that instead of taking out a loan now, potential buyers should save the cash and wait until they can use it to buy an even better property down the line.
"With the current levels of uncertainty and volatility surrounding the mortgage industry and the housing market, maybe it''s worth sitting on the sidelines and saving that ten per cent deposit until the stormy clouds blow over," said Andrew Hagger from the firm.
"If property prices were to fall by 15 per cent in the next 18 months, (which is conservative compared with some estimates), then those who are itching to get their foot on the housing ladder could benefit from a double whammy of very high savings rates and the falling cost of that elusive first property," he added.
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