Property Prices on the Rise in the South

Research into the ages of property owners in the north and south of Britain has provided financial institutions with valuable insight concerning the property market and the future of this industry. Studies have shown that first time home buyers are approximately 4 years younger in the north and this has led to a widespread debate over the different facets involved in purchasing a home, from the price of the properties in general to the services provided by financial institutions in the country. This debate has led to some understanding over the difference in age between areas such as London and Cleveland where the difference in age between first time home buyers is as much as ten years.

Buyer Discrepancies between North and South

The research that has been conducted between first time home buyers in the north and south of Britain have indicated that one of the biggest influencing factors in the vast age difference is the fact that property prices are higher in the south. Since first time home buyers have traditionally been required to save up a large deposit to place on the home of their choice they often have to save up for a longer period of time. Financial institutions have been very reluctant to provide individuals with a loan if they do not have this deposit and this can account, in part, for the discrepancy in age between first time buyers in the north and those in the south.

The 100% Mortgage Loan Debate

An interesting point to note is the fact that, although first time buyers in the north seem to be more able to purchase homes at an earlier age, they are statistically at a higher risk for financial strain and there is a higher rate of delayed repayments. Financial institutions need to be cautious when they approve loans to ensure that they do not allow their clients to find themselves in unnecessary financial difficult due to the fact that they have received too much credit.

The Rise of the 100% Mortgage Loan

As large financial institutions begin to make 100% mortgage loans more available to first time buyers, other financial institutions will follow and this might just even out the age differences between the north and south. The effects of these types of loans will, hopefully, lead to a rise in the property market but buyers need to ensure that they are aware of the financial pressures of purchasing a home so that they can structure their financial responsibilities appropriately to make payments on their mortgage each month without fail.