Getting onto the property ladder within the current economic crisis for many people is a major struggle. With debt levels increasing year over year and household incomes dropping because of increased fuel duty and VAT recently rising from 17.5% to 20%, there is little reason why the amount of people renting has substantially increased. Considering that rent is usually higher than it would be when on a mortgage it’s easy to understand the frustration for many people.

Even though current mortgage prices are the lowest they have ever been since the data provider Moneyfacts began recording rates in 1988. First time buyers have been locked out of the property market by the initial deposit that is required. With the current choice between tracker and fixed mortgages, the better deals can currently be found within the tracker mortgages, where you can find very low monthly interest but at a cost of a deposit as high as 35%, with the added risk of the interest being significantly increased. Therefore only suitable for people who can afford this if and when it happens. (more…)