First-time buyers “careful” when it comes to debt

First-time buyers (FTBs) in the UK are exercising greater caution over debt when getting on the property ladder, seeking to avoid unmanageable debts in the future and minimise initial expenditure.

Experts at Firstrung highlight older FTBs as more likely to be aware of the risks of accumulating debt when getting on the property ladder, with unexpected costs possibly leading new buyers to have to opt for additional loans as well as their mortgage.

As such, many decide to stick to strict budgets when furnishing a new property in order to minimise costs and avoid heavy debt.

“Because they are older, it’s more likely that theyíre slightly more cynical and a lot more careful about the amount of debt when they move in,” commented Paul Holmes of Firstrung.

“Their mortgage is a big enough debt as it is.”

Citizens Advice reports an increase in the number of people falling behind on mortgage repayments, with increased threat of repossession in the worst cases.

© Adfero Ltd

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