First time buyer

From Wikipedia, the free encyclopedia

A First Time Buyer (FTB) is a term used in the British property market for a potential house buyer who has not previously owned a property.

A First Time Buyer is usually desirable to a seller as they do not have to sell a property, and as such will not involve a housing chain.

There are many factors a first time buyer will need to consider before purchasing their first property, such as how much they will be able to borrow, how much they can afford to pay each month, how much initial cash they will need for stamp duty, solicitors fees and a deposit, which sort of mortgage they should use and how they should repay it. For this reason, most will use a mortgage broker.

In the UK home ownership is seen as both desirable and essential, as a natural step in the life cycle - like getting a job, getting married or having children. However, in recent years the number of First Time Buyers purchasing property in the UK has declined, which many industry experts claim is a sign of weakness within the housing market, with FTBs being "priced out of the market" by ever increasing house prices.