Twenty-three per cent of those planning to buy their first property say they have been able to save more during lockdown, research from The Nottingham has revealed.
The society suggested that one in five also say they should be able to buy sooner because mortgage rates have fallen during the crisis, partly due to the Bank of England’s base interest rate dropping to 0.1% in March – its lowest rate ever.
Of these people, the research revealed that 36% think lower mortgage rates could help them buy their first home six months earlier than they had originally planned, while 23% think it could speed up the process by over a year.
The Nottingham’s research, based on interviews with 1,023 people in March, found that 35% of respondents believe falling property prices caused by coronavirus will mean they will be able to buy sooner than planned.
Another one in five (21%) expect the current situation to speed up the process by up to 12 months, and a further 14% by over a year.
“There’s no denying that coronavirus has had a negative impact on many aspects of life,” The Nottingham senior mortgage manager, Ben Osgood, commented.
“However, our research has shown that falling interest rates and property prices could mean that many people saving to get onto the property ladder could do this sooner than they originally thought possible.”
Despite the society’s research revealing that many people will buy their first homes sooner than they had planned, it also shows that 64% of those looking to get on the property ladder don’t expect to do this until they reach at least the age of 30.
The Nottingham’s interviews also indicated that 30% anticipate they will have to wait until they turn 40, while 8% don’t think they will ever be able to afford to do this at all.
“We also recognise that in the current environment, with finances impacted and some products have stricter criteria or being withdrawn, it could be harder to secure a mortgage,” Osgood continued. “This is why first-time buyers and those looking to remortgage should consider a whole-of-market broker service to find the mortgage that’s right for them.”
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