One third of first time buyers receive mortgage approval

A significant proportion of first time buyers have mortgage approval while most of them have saved up cash for a deposit according to a new survey by leading Irish property website MyHome.ie.

A significant proportion of first time buyers have mortgage approval while most of them have saved up cash for a deposit according to a new survey by leading Irish property website MyHome.ie.

According to the findings, one third of first time buyers have received mortgage approval while a further 36% are actively seeking approval. 75% of first time buyers say they have the required funds to pay a deposit while 60% of existing homeowners say they have sufficient funds. The majority of the 1,800 people surveyed, strongly believe that house prices are set to fall further in 2012. 94% of first time buyers believe they have further to go while 86% of homeowners see them declining further. Despite this, half of first time buyers said they plan on buying a property in the next 12 months, while 42% remain undecided. 9% said they will not be buying.

However, only 20% of existing homeowners are planning to buy a property, 38% say they won’t be, while the largest group remains the undecided at 42%.

Eslewhere in the survey, two thirds of existing homeowners and 52% of first time buyers do not believe financial institutions are lending. Angela Keegan, Managing Director of MyHome.ie said: “Availability to finance was the number one factor for first time buyers and was also in the top three for existing homeowners. The fact that so many respondents believe the institutions are over regulated or over-cautious reflects the widespread frustration felt by prospective buyers of being locked out of the market.”