It has just been reported by the Council of Mortgage Lenders that more than 30000 mortgages were approved for purchases in March. However, this news comes as buyers with small deposits are still very much facing an uphill struggle, with the hill being incredibly steep and made from loose sand!The number of first time buyers taking out loans was up by 36%, and this accounts for the largest share of the market since April 2005 with 40% of approvals. Despite this, the absolute number of first-time buyers remains low and is well down on the 17800 who took out mortgages in March last year.
So, what does this mean for me? Well, given the falling interest rates and house prices the cost of repaying a mortgage would be at its lowest level since 2004, at around 15.1% of my monthly income needed to make the monthly payments, if I could raise a big enough deposit to get a Mortgage in the first place. Time to call in the big guns I think.... my rich uncles! Well, desperate times call for desperate measures... begging relatives for cash.
One thing I haven't mentioned is that I am currently renting a small house from my uncle, so I am essentially paying off his mortgage for him. On the one hand its nice keeping the money in the family, but on the other it's quite sickening!
I believe that if I can pull a big deposit together within the next 12-18 months, I'll be able to lock in on a fixed rate mortgage before everything starts going up again. Wish me luck.
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