First-time Buyers Should Make Savings to Move

HSBC recommends UK first-time buyers to overpay mortgages or make deposits in case they want to step up the property ladder.

According to the latest research by HSBC, many first-time buyers in the UK will be unable to climb the property ladder unless they save as they repay their first mortgage.

HSBC experts have calculated that the value of first-time buyer properties has fallen by 7% since 2007 and now they cannot be provide they deposit for required by lenders. As such, 4 years ago the properties were worth £162,423, but today they are priced at £151,061, a fall of £11,362.

On a regional basis, the value of first-time buyer homes fell the most in the Northern Ireland (-42%).

Commenting on the findings, Pete Dockar of HSBC, said: "These findings highlight the need to save or pay down an existing mortgage in order to fund that second step on the property ladder." In his opinion, overpaying the mortgage or making bank deposits are the two most obvious ways to build finance that can be used for further house purchases.

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