Financial difficulties 'may benefit first-time buyers'

Current difficulties in the financial sector could actually be beneficial for first-time buyers, according to an expert.

Andrew Hagger of Moneyfacts.co.uk said that people could benefit from "sitting on the sidelines" and putting money away for a deposit.

He explained that if property prices fall by 15 per cent in the next year and a half, people who play the waiting game before taking out a mortgage could benefit from high savings rates and falling property prices.

The expert went on to explain that saving can make people more attractive to mortgage providers.

"You will prove to yourself and more importantly any prospective lender that you are capable of affording a monthly mortgage repayment of a similar amount," he explained.

He added that "resisting the urge" to get on the property ladder "may be a strategy that works to their advantage in the longer term".

Recent research by Abbey claimed that 1.1 million first-time buyers are putting their property ambitions on ice for at least a year.

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