First-time buyers: how do they finance their purchases and what’s changed? – Bank Underground

Some interesting research out of the UK examining the impact of a variety of factors associated with first time house purchases.

Our results support claim that average FTBs are increasingly higher up the income distribution for their age. And slower than average income growth for younger workers have worked against FTBs. But our results challenge the view that average FTB ages have got much higher. And while FTBs on average are borrowing more in nominal terms, they aren’t spending more of their income on mortgage repayments than before: cheaper credit has roughly cancelled out the effect of bigger mortgages.

— Read on bankunderground.co.uk/2020/09/16/first-time-buyers-how-do-they-finance-their-purchases-and-whats-changed/

Author: From the Outside

After working in the Australian banking system for close to four decades, I am taking some time out to write and reflect on what I have learned. My primary area of expertise is bank capital management but this blog aims to offer a bank insider's outside perspective on banking, capital, economics, finance and risk.

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