First-time buyers will tentatively return to the property market in 2011, according to two leading property websites.
A survey by FirstRungNow.com showed 40 percent of first-time buyers are ready to pull together a 10 percent deposit after executing careful saving plans.
And research by property website Rightmove estimates that one in four people who hope to buy a property during the coming year will be first-time buyers – up from a low of 22 percent in July.
With many young people seemingly now ready to embark on such a big financial commitment, here’s some advice for those ready to buy their first home:
Traditionally, a buyer can borrow up to three and-a-half times the main earner's income before tax, plus one times any second earner's income, or alternatively two-and-a-half times their joint incomes if this is larger.
Lenders have eased on affordability, however, most still use affordability measures and will go for around four times individual or joint salary.
Interest rates will go up, so it's sensible not to push such limits. The base rate has been cut to a historic low of 0.5 percent - mortgage rates for big deposits are at rock bottom, but will rise in the future.