First time buyers turning to credit card to fund deposit
Ten per cent of first time buyers are intending to borrow money on credit cards and apply for bank loans to fund their deposit
First time buyers turning to credit card to fund deposit”
First time buyers are using their credit cards to fund a deposit for a house, according to new research.
UK home development company SmartNewHomes has published the results of a survey which shows that ten per cent of first time buyers are intending to borrow money on credit cards and apply for bank loans for their deposit.
Furthermore, around half of respondents expect to use their savings, while 18 per cent intend to get financial assistance from their parents.
The survey also highlights the pessimism of may potential homeowners, with 41 per cent concerned about their chances of obtaining a mortgage and 16 per cent claiming they do not ever expect to own a house.
Steve Lees, director at SmartNewHomes, said: "With renting becoming increasingly expensive they are resorting to credit cards and bank loans as a way of getting on the ladder.
"Interest rates remain low, making mortgages relatively cheap, so buyers are prepared to take on debt in the hope they will be able to pay it back at a later date."
Written by Jack Ramsey
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