'Rent and save' rather than buy, experts advise

31 2007
Young professionals looking to get onto the property ladder have been advised to rent and save up some money first rather than overstretch their finances and put themselves at risk.

According to the latest statistics from the Council of Mortgage lenders, the average first-time buyer in the UK is aged 28, with a salary of £35,000 and takes out a mortgage for 90 per cent of a property's value.

While there are products available which allow professionals to borrow more, often with little up-front, financial experts have advised that, with lender fees going up and house prices likely to fall, it is best to stay in the rental property sector long enough to build up a decent sum of money.

Dominic Mansley, managing director of Key Financial Consultants Ltd, said: "It's an ideal situation to have savings in place before starting down the road to purchasing your first property.

He added that, as average salary rises fail to keep pace with house price increases, those who do try to buy a property without having saved up first are likely to face increased difficulties, with many forced to turn to credit cards, personal loans or even family members to bail them out. ADNFCR-1219-ID-18337430-ADNFCR

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