With the average age of a First-time buyer now 37 years old, a number of people are currently renting or living at home with their parents. However there have been real positive movements in this area of the market. Recent figures from the Council of Mortgage Lenders have shown that the number of first time buyers purchasing a new home, is the highest it has been for 5 years. In fact, 42% of all the mortgages in the last quarter of 2012 were for first time buyers.
There have been a number of initiatives from both lenders and the government to help people get their foot on the property ladder, so now might be the right time to start looking for a mortgage. The availability of high loan-to-value (LTV) products has recently increased with some lenders offering up to 95% of the property value, meaning you need a much lower deposit.
The new government Help to Buy scheme was announced in this year’s budget in April. This £3.5bn scheme is designed to help buyers purchase a home with only a 5% deposit and provides either an interest free loan for 5 years of 20% deposit of the property value. This means the borrower can apply for a 75% loan to value (LTV) mortgage. Halifax, Nationwide, Woolwich and NatWest are all supporting the scheme and have launched Help to Buy products with competitive rates.
If you are looking to purchase a property under £250,000, you can also currently get 100% of the stamp duty paid if borrowing from Halifax. This could save you up to £2,500 by not having to pay the 1% stamp duty. This offer is available on selected Halifax products for a limited time only. This includes a choice of different loan-to-values (LTV), affordable housing, Help to Buy, First Buy and New Buy products.
Woolwich mortgages from Barclays have also supported first time buyers by introducing the Family Spring Board mortgage. The borrower takes out a Family Springboard Mortgage with a 5% deposit at a competitive rate. Their parent or family member opens a Helpful Start Account, into which they put savings equal to 10% of the price. After 3 years, the Helpful Start Account is closed and the family members get their money back with the interest earned, provided that the borrower has kept up to date with the mortgage repayments.
Buying your first home is a big commitment and there are many things to consider when taking out a mortgage, including your general insurance and protection needs. We can take the hassle out of finding a mortgage and can help find the best deal for you. We are able to provide a full advice service and guide you through all the options available to you. We also offer a full service in insurance and protection so why not contact us today?
Your home may be repossessed if you do not keep up repayments on your mortgage.