Mixed news for first time buyers
May 7, 2010
Whilst first time buyers have experienced extreme difficulties over the past couple of years when it comes to being able to get onto the property ladder a number of changes have taken place over recent months that have eased the situation for many people within this group.
However, whilst some improvements have been made that will affect first time buyers positively recent reports have shown that most buyers will still need a substantial deposit to be able to get onto the property ladder, which means that the news for this group of buyers at the moment is very mixed.
Recent reports have indicated that the number of mortgage deals on the market that are aimed at first time buyers has increased, and that more and more lenders have been increasing the number of mortgage deals where only a 15 percent deposit is required rather than a higher deposit level.
However, whilst this may sound like good news some industry officials believe that first time buyers, in some cases, may still need to find around £50,000 in order to get their foot onto the property ladder.
The other good news for first time buyers is that the stamp duty exemption has been increased recently, and will now apply to properties that are up to £250,000 in value rather than the standard £125,000.
This could save first time buyers up to £2500 depending on the value of the property that they are buying. However, those that have ever owned a property in the UK before, even if they have not owned any property for some years, will not be eligible for this increased exemption threshold and will have to pay stamp duty as normal on properties over the value of £125,000.
- Mixed news for those with low deposits for mortgages In the past getting an affordable mortgage with only a low deposit of 5 percent, or even with no deposits at all in some cases, was not a big problem, as many mortgage lenders offering
- Mixed reactions on housing proposals from government The government in the UK has made a number of new proposals recently to try and kick start the slow housing market, and amongst the actions taken by the government are a suspension in stamp
- Parents may be offered unsecured loan to help with kids’ deposits These days first time buyers face a tough time when it comes to getting onto the property ladder. Apart from the high property values that they have to contend with there is also the fact
- First time buyers could be affected by return of buy to let landlords According to a recent report a rising number of lenders are starting to approve mortgage deals for buy to let borrowers following a rocky period when fewer and fewer of these deals were being approved.
- Mortgage choice for first time buyers on the increase A recent report has shown that the number of mortgage now available on the market for first time buyers has increased, which means that first time buyers can enjoy boosting their chances of getting a
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