Property News

FTBs "deep" in debt - 02/05/2006

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Nearly half of first-time buyers (FTBs) are thousands of pounds in debt before entering the housing market.

New research from Bradford & Bingley reveals the extent of the debt consumers in general and FTBs in particular face in the UK.

Around 50 per cent of all FTBs have debts of around £8,000 or more with 16 per cent having debts of £15,000 or above.

For some (43 per cent), the financial burden has become so great that they have considered giving up all hopes of buying altogether.

And while a mere 13 per cent intend to clear their debts before they buy, ten per cent will add to their financial concerns by decorating their new homes.

Duncan Powell, mortgage development manager at Bradford & Bingley, said: "Buyers who are already in debt should be wary about taking on additional loans such as 'buy now pay later' deals on furniture and electrical goods.

"Just as they get used to the mortgage payments as well as paying off existing loans they could be surprised by an additional demand on their budget."

Recent research from Bradford & Bingley found that many FTBs are forced to work almost 12 extra hours a week.

Almost a quarter are also working nine and a half-hours in order to let them buy property sooner.

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