First Time Buyers Are Struggling to Get a Mortgage
Shockingly 40% of people aged 25-34 can’t afford to buy one of the cheapest homes in their area, even with a 10% deposit.
It’s tough out there for new home buyers. It’s not just the fact that house prices are high. Deposit requirements are making first time buyers think again. Should you ditch the whole idea of a mortgage and rent instead?
Whilst renting might seem like the option of least resistance, it really isn’t the best choice in the long run if there are other options on the table. Rent is ongoing. There is no end in sight. Taking out a repayment mortgage means that you will own your property eventually. Monthly mortgage payments will be a thing of the past.
Help to Buy Means Owning Your Own Home Is Now a Possibility
There is help out there. You may not know that the government actually wants you to own your own home. They know how important getting your foot on the first rung of the ladder is.
This is a new build scheme. You might not have considered a brand-new house. It may not have been on the agenda. Now is the time to consider all of the options. With each new government comes new policy and legislation. As mortgage brokers we never know how long any scheme or initiative will be available to home buyers. It’s good to do the research and weigh up your options before making a decision but equally you should move on that decision when you feel it’s the right one.
What You Need to Know About Help to Buy
The Help to Buy scheme offers an equity loan where the government lends first-time buyers and existing home-owners money to buy a newly-built home.
The purchase price must be no more than £600,000. Under this scheme, you can borrow 20% of the purchase price interest-free for the first five years as long as you have at least a 5% deposit. If you live in London, you can borrow up to 40% of the purchase price.
First Time Buyers Benefit for Longer
The current government has extended the scheme until 2021 for first time buyers.
Thinking About it?
If you are seriously thinking about help to buy, then drop us a line, give us a call or arrange a call-back from one of our advisors via the link at the top of this page.
