Those seeking mortgage finance are exploring all options in the attempt to get on the housing ladder for the first time, it has been claimed.
According to FirstRungNow.com, low-cost home ownership schemes (LCHOs) are becoming increasingly popular, thanks to the “desperation” of would-be first-time buyers.
Recent Halifax figures show that LCHOs were responsible for 13 per cent of all private enterprise and housing association sales in 2009/10.
This was up notably on the eight per cent recorded before the financial crisis began.
FirstRungNow.com managing director Helen Adams explained that many young people are now willing to try anything to get their hands on the keys to their own home.
“I think that first-time buyers at the moment are looking at all options that are available to them – both special mortgages from lenders and government schemes – out of desperation because it is so hard to get onto the property ladder without some sort of assistance,” she said.
The expert added that there is a need to make LCHOs clearer as they can often be “convoluted” and difficult to understand for the uninitiated.