Increased mortgage repayments are a big turn-off for buyers

20 2008
Britons are being put off buying property due to fears about hikes in mortgage repayments, new research has revealed today (June 20th).

The Building Societies Association (BSA) has released its regular 'Property Tracker' survey, and the figures highlight several reasons why people are reluctant to buy in the current climate.

And in an admission which undoubtedly explains the increasing popularity of renting, 70 per cent of those questioned cited repayments as the biggest contributing factor.

Adrian Coles, director general of the BSA, said: "The finding that monthly mortgage payments are currently seen as the main barrier to house purchase demonstrates the extent to which household finances are being stretched, as well as a reflection of the increased price of risk now incorporated into mortgage rates."

The survey showed that many Britons doubt their ability to secure a large enough mortgage or even get one at all, while 46 per cent of respondents expressed concerns about future falls in property prices.

A total of 47 per cent also claimed that with finances currently being squeezed by rising fuel, energy and food costs, they would be unlikely to raise a deposit.
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