Latest Debt News
"Very dangerous" to fund property purchase on back of debt
06/05/2008 09:23:00
Attempting to buy a house without having the funds in place is "very dangerous", one financial expert has claimed.
Iammoving.com said that those first-time buyers relying on unsecured loans, borrowing and credit card debt to raise the money for their deposit were putting themselves at risk of landing in greater debt.
Peter Beckett, business development director, said that the whole housing market is at a turning point with falling prices and first-time buyers searching for ways they can manage to get themselves on to the first rung of the property ladder.
"But it's a very dangerous thing to do it on the back of unsecured debt unless you are extremely confident about your job security," he continued.
Recent research conducted by iammoving.com has shown that one in three first-time buyers are taking a gamble by using unsecured loans, borrowings and credit card debt to raise a deposit.
A further 17 per cent of first-time buyers are borrowing the money for a deposit from friends or family.
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