Press Release
DROP IN PROPERTY PRICES GIVES FIRST TIME BUYERS CONFIDENCE
New Equifax survey suggests renewed confidence in first time buyer market
London, 17th November 2009 - The findings of new research by leading instant online credit information provider, Equifax, suggest that first time buyers are starting to come back into the property market.
A survey of Equifax customers who have purchased a copy of their credit report found that 70% of the first time buyers who responded felt more confident about stepping onto the property ladder as a result of the drop in property prices. The introduction of a number of new products for the first time buyer sector is also likely to have had an effect, with 75% saying that they had put a hold on their plans in the last year because of the lack of mortgage products on the market.
But the availability of a reasonable deposit still appears to be a challenge for a number of first time buyers, with only 12% having a deposit of more than 20% of the property value and over a quarter (26%) having just a 5-10% deposit. Unfortunately 35% said they have less than 5% deposit which is likely to continue to make it difficult for them to get a mortgage.
Two thirds of respondents also said that they had found it difficult to get a competitively priced deal with over a third (38%) blaming this on the size of their deposit.
However the importance of their credit history didn't go unnoticed for 30% who said they thought they hadn't been able to get a good deal because they had previously defaulted on credit or loans. And 17% felt their lack of any credit history to date had been a detrimental factor.
"Clearly the challenging financial conditions are still making it hard for first time buyers to get on the property ladder", confirmed Neil Munroe, External Affairs Director, Equifax. "But what our latest research, conducted in early October, shows is that there is a new level of confidence that probably hasn't existed for the last 12 months or so.
"As our research is based on a survey of consumers who have bought a copy of their credit report there was, of course, a good level of understanding of the power of knowing what's on your credit file. But the fact that 70% of respondents had got a copy of their credit report BEFORE they started shopping around shows an encouraging level of awareness of getting finances in order before making mortgage applications."
Confidence in their financial future could, however, be the major stumbling block for first time buyers in the next few months. Nearly a quarter (24%) said they are concerned about getting into financial difficulty in the next 12 months.
"If you're a first time buyer it is definitely worth getting a copy of your credit report before you start making mortgage applications£ concludes Neil Munroe. "And the Equifax Credit Report, with the facility to access credit information for the first 30 days free, is the ideal solution. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges."
If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.
ENDS
*The Equifax survey was conducted at the beginning of October 2009. A total of 106 respondents were first time buyers
For interviews with Neil Munroe please contact the Equifax Press Office: Wendy Harrison, Cecile Stearn, Elinor Puzey or Louise Fowler on 020 8977 9132. louise@harrisonsadler.com