First-time buyers urged to tread carefully when securing first-time buyer mortgages

Published: May 07, 2008

First-time buyers have been urged to exercise caution before they commit to taking out a first-time buyer mortgage.

Research conducted by iammoving.com suggests one in three first-time buyers are taking a massive risk by raising a deposit through the use of unsecured loans, borrowings and credit card debt.

What's more, a further 17 per cent of first-time buyers are borrowing from friends or family in order to raise funds for the deposit on a first-time buyer mortgage.

As a result, iammoving.com business development director Peter Beckett believes first-time buyers should be on a more secure financial footing before they commit to purchase.

"The whole housing market is at quite a turning point I think, whereby the prices are coming down and first-time buyers are looking for ways to be able to manage to get on to the ladder," he commented.

"But it's a very dangerous thing to do it on the back of unsecured debt unless you are extremely confident about your job security."

The average first-time buyer will need to raise a deposit in the region of £10,000 to £15,000.