Abacus Daily Debt News

Potential buyers ’shouldn’t rush into debt’

First-time buyers are being advised to make sure they do not step on to the property ladder unless they are sure about their financial future and have secured a good deal.

Helen Adams, managing director at FirstRungNow.com, explained that potential homeowners should consider whether now is the correct time to take out a home loan because mortgage offers remain high as banks are cautious about lending.

She urged buyers to assess their options carefully, rather than make a hurried decision.

"You’d have to get a good property bargain and a reasonable mortgage for this to be a good time to step on to the property ladder. I wouldn’t rush into it," explained Ms Adams.

According to Moneyfacts.co.uk, the average five-year fixed rate is currently six per cent, despite the Bank of England’s base rate standing at a record-low of 0.5 per cent and the three-month inter-bank lending rate being at 1.08188 per cent.

By Suzi Richards