First-time buyers are taking out personal loans

Research out today has found first-time buyers are taking out loans to afford the deposit. Thirteen per cent of 18- to 34-year-olds are considering buying a property for the first time in the next year, but of those, 16 per cent say they will consider taking out a loan to cover the deposit. Critics have warned that it is a ‘dangerous move’ and have called for lenders to assess the affordability of a mortgage on a case by case basis. The average deposit for a first-time buyer is £32,000.