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Brits believe banks don’t want to lend to first time-buyers


A report from Halifax has shown that although the number of first time buyers is rising, 79% of 20-45 year olds believe banks don't want to lend to first-time buyers, and 21% believe it is virtually impossible for first-time buyers to obtain a mortgage.

The number of first-time buyers rose to 311,500 in 2014, which is the highest number in seven years, thanks to improving economic conditions and government-run schemes. Despite this, a large number of people still believe they will never be able to apply for a mortgage.

The Halifax survey also showed 43% of non homeowners are currently saving to buy a property compared to 57% who are not. This reinforces the view that many people are giving up on the idea of owning a home to the standard they would like. Out of those who are saving, they are prepared to do so for average of 5.35 years in order to save for a deposit, and can afford to save just £33.35 a week on average.

The three most cited barriers to homeownership among those who do not own a property are the size of the deposit, high property prices, and low income.

Craig McKinlay, Mortgages Director at Halifax, said:
“The Generation Rent Report 2015 has revealed real changes in the first-time buyer market in the last year. While there has been an increase in first-time buyers in the last 12 months, at the same time there is also a growing group of young people who believe they won’t be able to get a mortgage. This difference between the reality and their perception needs to be addressed urgently if we are to prevent people from giving up on getting on the housing ladder."

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