The Telegraph warned this weekend of the growing gap in wealth between our older ‘baby boomers’ and those in their 20’s and 30’s, for whom the prospect of getting onto the first rung of the property ladder feels more and more out of reach. Recent research by a well-known building society revealed that 3 in 4 young adults see home ownership as a marker for succeeding in life, yet figures suggest that property prices are now around 5.2 times average earnings. Equally, the average deposit has increased from £10,000 30 years ago to £50,000-£60,000 today. Experts highlighted the lack of supply of properties as the core issue, but welcomed Government initiatives such as the Lifetime Isa as a way of helping younger people save.
For those couples going their separate ways, trying to incorporate maintenance income when applying for a mortgage brings its own set of problems. The Sunday Times highlighted a recent study of major lenders to reveal the wide variation in criteria when it comes to maintenance payments. Some will not accept this as income at all, or will only take 50%-60%. Others may be flexible, looking at how long the payments have been in place, but most require a court order or CSA-ordered payment to be in place. Experts suggested that this penalises those attempting a more amicable approach to separation.
What the papers said about young buyers and divorced homeowners