First Time Buyers Taking Bigger Risks
July 14th, 2008 by 
Guy
A recent poll  has found that 30% of first time buyers are using unsecured loans, borrowings, or credit card debt to put together a deposit for their first home.Of the 250 first time buyers either in the process or having just bought their first home who were polled, over 40% has used there own savings to put down a deposit on their home, which is the safest means possible.
The survey also found that, as housing prices are falling, many first-time buyers are turning to very high risk ventures to gain enough for their deposits. For the £10,000 to £15,000 deposit, 13% have used an unsecured loan or credit card debt to raise the funds, and 17% have gained the money from family.
Banks no longer offer 100% mortgages, however over 8% of those polled had already signed on with one of these deals and have used it for their first home,
A further 6% have used shared ownership for their first home deposit, 10% have used some sort of inheritance, and over 5% have sold a major item, like a car or motorbike, to get their deposit.
Our expert expalined about the high risks associated with unsecured lending, and that it placed first time buyers in a precarious situation, relying on a big change in the market or their personal financial situation. First time buyers are looking to more risky means of gathering the funds for their deposits, in spite of banks taking away the 100% mortgages.
Posted in Mortgage news | 