Why Fewer People Are Looking For Mortgages In 2024

Life is getting more and more expensive. We are still in a cost-of-living crisis with food prices at an all-time high, and utility bills at an eye-watering level. Thanks to the Covid-19 pandemic, many are still struggling to find work in an economy that offers far fewer jobs, and for those who are lucky enough to still be in work, many are facing ever-rising rental fees.

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It’s no wonder that people who are struggling with all this take one look at the cost of a house deposit and simply say, ‘no thanks!’.

In these uncertain times, renters may feel that they are playing it safe. After all, if you suddenly lose your job thanks to your employer suddenly closing shop, having the burden of an ongoing mortgage looming over you would be an enormous weight to bear. If you only need to find rent for a room for the next month, that is a much easier challenge.

It’s just easier to take it month by month. Even back in 2015, the Guardian reported that by 2025, less than 30% of young adults would have made it onto the housing ladder. If housing prices back then led to such a bleak forecast, we can only imagine what a post-pandemic forecast must look like now. Thanks to spiking living costs combined with the average cost of rent per month, it is now even tougher than ever to even save up that crucial deposit, despite the fact that 5% deposits are now available. This means that more and more people are unable to even get their foot in the door of their own rental property, let alone the door of their own starter home.

Patronising advice such as cutting back on a £10-a-month Netflix subscription or the odd avocado toast here and there seriously underestimates the severity of the problem. The average home now costs significantly more than even ten years ago, and interest rates are on the rise, too. A mortgage company may make you an offer that you simply cannot afford, with no room for negotiation, which can leave you feeling hopeless.

But it is not hopeless. If you are in your 20s, 30, 40s or beyond, you don't have to stay stuck in the rental loop forever. Your first step to gaining control of your housing future is to gain control of your finances, and you can do that by either looking at your income and outgoings and creating a plan yourself, or you can reach out to a Financial Adviser. Financial experts such as the team at Integritas can help you in every aspect of your financial health and can complement any work you have already done yourself. We can help you work out your best chance of securing an affordable mortgage.

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