Buying
It has never been easy to get into the property ladder especially for first-time buyers. With the economy clouded by uncertainty due to Covid-19, the vision for first-time buyers become a little blurry.
The new 95% mortgage scheme was announced by the Prime Minister. This will help first-time buyers get their foot on the property ladder. Schemes such as Help to Buy outlines that the first-time home buyer needs to provide a 5% down payment, making it more affordable for those who don’t have the amount for a big deposit.
Basically, you have to be in the best position financially to be able to secure a deal with lenders. This scheme aims for more young people to be able to buy a home. The long new term mortgages will be available for the First Time Buyers at a fixed rate. Moreover, the requirements to get a mortgage through several banks is likely to be loosed. This means, there will be less stringent questions before getting a loan about first time home buyers’ income, debts, plans, and “stress tests”
There are concerns regarding whether those who are buying will be able to afford the 95% mortgage, due to the offerings of the banks where a loan should be 4.5x your current income, however, there are talks of this of banks being relaxed, allowing buyers to borrow more.
Currently, it is still unclear whether the new scheme will involve changes in the current regulations, or there will be direct involvement from the government, but the future’s for fist time home buyers is not that gloomy. Also, the scheme hopes to fix the current broken housing market and in effect boosting the economy that has been affected by the pandemic.
Bluestone Properties is an estate agency in south London. We are based in south west London and we cover south London and surrounding areas. Feel free to contact us at 0208 355 340
