Priced-out property buyers told to ‘sit it out’

Would-be first-time buyers in the UK that are currently priced out of the property market have been urged to wait before taking on a home loan.

Many first-time buyers struggle to deal with their mortgage-related debt management burden and by taking the time to accumulate a sizeable deposit some of these problems can be avoided.

Paul Holmes, operations director of Firstrung, is convinced that by being patient and using their funds wisely, would-be first-time buyers can side-step some of the difficulties homeowners are feeling at present.

“Save up your deposit and be very careful that you don’t waste that deposit on peripherals,” Mr Holmes advises anyone currently priced out of the housing market.

“Just simply put it away and be confident that as prices are falling there will be a time when you can put that deposit to incredibly good use.”

David Kuo, head of personal finance at Fool.co.uk, said earlier this week that banks and other mortgage lenders are treating their customers unfairly and leaving them with a serious debt management headache.

By Frank Charlton