People who have stepped onto the housing ladder for the first time may be the least affected by the recent surge in repossessions, it has been claimed.
Firstrung, a financial and buying solutions company for
first-time buyers, has pointed out that they will be the buyer group that feels little of the impact of the current repossessions trend.
Paul Holmes, operations director of the firm, explained that over the last two years, the average first-time buyer mortgage has amounted to £115,000 and that this, on average, has been taken out as a joint venture.
"A £115,000
mortgage shared between two recent first time buyers both in work is very manageable … it is their
home, they have recently bought it and they can generally afford it," he said.
Mr Holmes went on to say that people with £250,000 plus mortgages may be the ones who feel the squeeze.
The number of
mortgage possessions claims in the first quarter of 2008 has increased by 16 per cent, according to figures from the Ministry of Justice.
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