FTBs giving up the ghost?

A new survey has revealed widespread FTB pessimism over the state of UK property market.

According to a survey foreign exchange group Moneycorp:

- Three-quarters of potential first-time buyers are abandoning plans to get on to the property ladder due to the current housing market downturn.

- Around 74% of people said they were putting plans to buy their first home on hold due to the current conditions in the housing and mortgage markets,

- A third of those questioned also said they had tried to buy a home during the past six months, but had been refused a mortgage.

- Around 44% of first-time buyers said they were now seriously considering buying a property abroad and continuing to rent in the UK in a bid to take advantage of cheaper house prices overseas.

The credit crunch has caused lenders to tighten their lending criteria, with 100% mortgages disappearing and 95% ones becoming increasingly scarce.

Most mainstream lenders are now demanding deposits of at least 25% in order for borrowers to qualify for their best rates. Spain is the most popular choice for people considering this option, followed by France and the US.

Marc Morley-Freer, Moneycorp spokesman, said: "The fact that so many buyers are prepared to get their first taste of homeownership in a foreign land speaks volumes for the state of today's domestic market conditions."


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