Tag Archives: first time buyers

House prices take a slight fall but will still be rising in the next year

May 4, 2012

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House prices seem to be fluctuating widely at the moment, Halifax have commented.

The mortgage lender and bank have said there was a 2.4% drop in April, this may have something to do with the stamp duty deduction as sales dropped after rising with the deduction.

With the drop in April it took the average house price down to £159.883 which is slightly lower than last year by 0.5%.

Halifax have warned that house prices are still rising even with this small dip.

“Prices in the three months to April were 0.3% higher than in the previous quarter, marking the first rise in this measure for seven months,” The Halifax’s housing economist, Martin Ellis, has commented.

“The ending of the stamp duty holiday for first-time buyers in late March appears to have boosted home sales early this year as buyers strove to beat the deadline, and has probably contributed to the volatility in house prices in the last few months,” he added.*

Nationwide have given a slightly different percentage to Halifax, but as the different mortgage lenders use information from their own lending it isn’t surprising that they all have different numbers.

Nationwide have put the annual fall at 0.9%.

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Rents took a small fall in March, according to letting agents

April 20, 2012

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They only went back slightly but in march private rents in England and Wales fell, according to the letting agency group LSL.

The drop was only 0.3%, just £2 making the average rental price £705 per month.

The LSL group commented on the fall but said it may be a one-off. The drop may have something to do with first time buyers making the most of the stamp duty deduction and moving out before it came back.

The price of renting privately is more costly than last year, they are up by 2.7%.

“The rental market was still feeling the knock-on effect from the stamp duty deadline in March, with an increased number of tenants rushing to leave the sector in the first part of the year, easing tenant competition,” said David Newnes of LSL.

“With the passing of the stamp duty deadline increasing the cost of moving, and banks’ funding conditions likely to limit high value mortgage lending to first-time buyers, would-be buyers will be more reliant than ever on rented accommodation.”*

 

*Quote from BBC News

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New buy scheme takes over the stamp duty holiday

March 26, 2012

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The stamp duty holiday for first-time buyers has now ended so they will now join in with others and pay 1% tax on properties worth more than £150,000

The BBC have reported saying that the Government have changed back to the original 1% tax for first-time buyers because the holiday had been ineffective in helping people to buy.

The Government now think that the new buy scheme will get Britain’s first time buyers onto the property ladder.

When the stamp duty holiday was introduced back in 2010 it made savings of up to £2,500 for first-time buyers for homes worth up to £250,000.

In the new budget the Government announced a 7% rate on homes over £2m and they want to stop stamp duty avoidance for property buyers at the higher end of the market.

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Newbuy, Government backed scheme to help first-time buyers get their feet onto the property ladder

March 13, 2012

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Most first-time buyers are struggling to raise a deposit for a mortgage so they can own their own home. Some deposits can be around £20,000 or even £40,000 which would take years of saving to get.

Now the government backed scheme ‘Newbuy’ is allowing first-time buyers to have the chance to own their own property and they may even only have to raise a deposit of 5%.

On new build homes (flats & houses) the buyer can get a mortgage of up to 95% of the purchase price and it is only available in England only.

If you are interested in a new build property and you already have at least a 5% deposit saved, you can go to a developer, mortgage lender or IFA (independent financial advisor) to see if you’re eligible for the new buy scheme.

Any mortgage applications will go through the normal process and will be assessed in the usual way.

If you pass all the steps to be accepted to get a mortgage (lenders affordability & credit criteria) you may be able to get up to 95% of the purchase price.

Direct Gov have added information on how you need to qualify on their website…

  • You must be a UK citizen or have the right to remain indefinitely in the country.

Newbuy properties must be:

  • New Build – Residential properties being sold for the first time or for the first time in the current form.
  • Priced up to £500,000 – but there will be no cap on income.
  • Full ownership – Newbuy is not available for shared ownership or shared equity purchases.
  • Primary homes – Newbuy will not be available for the purchase of second homes or for buy-to-let purchases.

If you are going to use the Newbuy scheme you cannot use and other publicly funded mortgage scheme or have an interest-only mortgage.

Grant Shapps, Housing Minister has said because younger people cannot afford deposits the average age of the first-time buyer has risen.

“I’m not prepared to stand by, and nor is the Government, to watch an entire generation of people be locked out of the housing market when they can afford proper mortgages” He commented.

For more information CLICK HERE to go to the Newbuy Government backed website.

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First time buyer numbers are picking up

February 13, 2012

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By the end of 2011 the number of mortgages for first-time buyers that were agreed rose according to the CML (the council of mortgage lenders).

The BBC has reported that there were 18,700 home loans for first-time buyers in December, making a 7% rise from November and 14% up on December 2012*

CML have released the percentages of mortgages for home buyers, in 2011 these fell by 6% to 509,500 of agreed mortgages. They also said that first time buyers may be making the most of the 1% stamp duty holiday.

"With the eurozone problems still rumbling on, however, we believe there is still a real risk that this year's lending levels will be lower than those seen in 2011."

“We have been expecting a flow of first-time buyers on to the market, as the stamp duty exemption ends in March, and December’s figures appear to show this has now begun,” said Paul Smee, the CML’s director general.

“With the eurozone problems still rumbling on, however, we believe there is still a real risk that this year’s lending levels will be lower than those seen in 2011.”*

*Quotes from BBC

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