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Rising house prices may be making it tough for FTBs


House prices have made a strong start to the year - rising by 1.2 per cent in January alone - which could be making the task for would-be first-time buyers (FTBs) more difficult.

The rise follows an increase of 0.5 per cent in December and figures are now 8.6 per cent up when compared with the same period a year ago, reveals Nationwide.

Adding to the woes of FTBs is growing uncertainty over interest rates - meaning those who do manage to secure a mortgage for their first rung on the property ladder could be facing unpredictable repayment levels in the future.

Martin Gahbauer, Nationwide's chief economist, said: "With pay inflation near zero or even negative, every additional increase in house prices worsens housing affordability, particularly since interest rates are very unlikely to fall any further."

With the likelihood of being able to afford and secure a mortgage for a new home, FTBs may want to consider alternative methods - such as shared equity mortgages or shared home loans - on which repayments could be easier to make.

The Halifax House Price Index this week revealed that house prices have more than doubled - rising by 105 per cent - in the last decade.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at

Doubling of house prices 'makes life more difficult for FTBs'
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FTBs 'battling to enter less affordable' housing market

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There's alot going on! What do you think?

Interest rates are low but could rise? Is this a good time to buy?


Varialbe rate mortgages go up if bank interest rates do. Which is your preference?

Fixed Rate
Variable rate

Interest only mortgages are cheaper but in the end you don't end up owning the property. Which is better?

Interest Only

House prices are waivering. Do you think this is a good time to buy?


Shared equity mortgages allow you to buy a new home with 5% deposit and an equity loan through FirstBuy. What do you think?

Too complicated
Too expensive
Too risky

Rent to buy allows you to peg a property price, save towards a deposit and pay reduced rent. What do you think?

Works best in a rising market
Too complicated
Good option