FTB’s ‘financial fling’ costs dearly

Around a fifth of FTBs plan to spend an average of £5,000 on cars, holidays and other luxuries before a mortgage, the Alliance & Leicester found, yet this could push them into debt.

“Buying your first home can be a costly process and first time buyers need to be practical about what they can and cannot afford,” warned Richard Taylor, head of mortgages at the building society.

News of a financial blow-out stands in contrast to the struggle of many FTBs to get onto the housing ladder, many of whom have had to rely on parents or high-value loans to get a home.

While Mr Taylor said he could understand why people would wish to spend money before taking on the financial commitment of a mortgage, he warned against it.

Instead, Mr Taylor said that with a proper debt management plan FTBs can enjoy their new home without it affecting their normal life too much.


Tell others:


By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.