Funding a property on unsecured debt is ‘very dangerous’

Posted 2008-05-5

House buyers are being warned about the perils of purchasing a house using unsecured loans and other funds.

Peter Beckett, the business development director at iammoving.com, claims that with the housing market in such a delicate state, raising a deposit with credit card and unsecured loans is "very dangerous".

Recent research has found that three out of ten first-time buyers are using unsecured funds to buy their first property.

"The whole housing market is at a turning point, whereby the prices are coming down and first-time buyers are looking for ways to be able to manage to get on the ladder. But it is a very dangerous thing to do it on the back of unsecured debt," he said.

Mr Beckett added that unless one feels confident about their job security, such forms of financing are unwise.

Research from iammoving.com revealed that 17 per cent of first-time buyers are borrowing money from friends and family to purchase a house.

Leave a Reply