First time buyers in Wexford are getting older, and struggling to save for a deposit in order to secure a mortgage. That is according to Margaret Barrett, CEO of leading Irish mortgage brokers, Mortgage Navigators.
Barrett urged prospective first time buyers to start focusing on their financial health earlier in their career adding that rising rents, and a higher cost of living are making it more challenging for first time buyers to save the required deposit.
CEO Margaret Barrett recent spoke to Wexford Weekly on the issue:
“The average first time buyer we see is now between 37 and 40 years old. They are struggling to put together the required deposit to secure a mortgage and many of them do not have a solid track record of savings. We are seeing mortgage application refusals because the buyers have not saved enough to convince the bank they are a reliable borrower. We also continue to see the use of a gift from family members, along with the use of the government supports to help our clients to secure their dream home”
Barrett cautioned that the situation will only get worse as the European Central bank enters a period of lending rate increases in a bid to tackle EU wide inflation.
The Mortgage Navigators CEO said that securing a mortgage is relatively straight forward in most cases but she urged prospective first time home buyers to start saving early in their career. She pointed out that financial institutions prefer first time buyers with solid savings track records that did not begin just six months before their mortgage application. Furthermore, a mortgage repayment can be for 30-35 years so the client needs to ensure the monthly direct debit is extremely comfortable every month on their net disposable income.
Barrett cautioned young workers to seek advice from a mortgage broker, even if purchasing a home is still several years away.
“Getting mortgage-ready is about becoming more financially aware. First time buyers need to understand the importance of consistent savings, not missing direct debits or loan repayments, and demonstrating to the lender that they have proven financial responsibility”
Barrett, a qualified financial advisor, added that many first time buyers need to review their discretionary spending if they are serious about getting onto the property ladder.
“Saving for a deposit may mean you to make certain sacrifices. That may mean less holidays, dinners out and cutting back on certain areas of spending for a period of time. First time buyers need to ensure they are in the strongest possible position to secure a mortgage”
Barrett welcomed the fact that mortgage approvals in Ireland are up year on year and encouraged those with an interest in getting a foot on the property ladder to start financial planning early.
Wexford Weekly
This article was published by a member of the Wexford Weekly team.
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