Posts Tagged ‘First-time buyers’
Monday, September 28th, 2009
The last few months have seen first time buyers back in the house market with a bit of a vengeance. After over a year when first time buyers were almost an endangered species many more have taken the plunge recently.
Three issues have favoured buyers in this category. First there has been a ready supply of first time buyer properties, mostly flats, with sellers anxious to sell and willing to do a deal on price. Secondly the LIFT mortgage programme solved the funding problem for many first timers – with the government though housing associations – effectively providing and interest fee loan for the deposit. Thirdly the stamp duty “holiday” granted by the chancellor cut the cost of buying flats at the entry level to the market. All in all for the last several months first timers have had things pretty well there own way.
All good things must come to an end as they say and the signs are first timers are not going to enjoy these advantages going forward. Kirsty Jack senior property manager at Caesar and Howie has noticed prices firming up in the flat market. “Sellers have quickly reacted to the increase activity in flat sales, with less now desperate to do a deal at any price – in fact some closing dates are even creeping back in with there being more buyers around”
On the mortgage and stamp duty issue things are changing a little for the worse. Sandy McFarlane long time mortgage advisor at Caesar and Howie warns “ I think the ready supply of Lift funds is beginning to run out in some parts of the country – especially in the Lothians. With that and the Stamp Duty holiday ending in December I would say first time buyers need to move now to take advantage of Lift and not having to pay stamp duty. These benefits are not going to be around much longer – so first timers need to move now to make the most of them whilst they last”
Tags: First-time buyers, housing market
Posted in Estate Agency | No Comments »
Monday, June 22nd, 2009
The Low Cost Initiative for First Time Buyers is proving an attractive option for some first time buyers – and is bringing more activity to the housing market – at least that is the view of Caesar and Howie property experts.
Experienced mortgage broker Sandy McFarlane of Caesar and Howie comments – “I have never been busier on the mortgage front – mostly with LIFT cases. We have learned everything there is to know about LIFT mortgages and provided you know and understand the criteria you can access LIFT funds as a deposit for first time buyers. This will help meet the continuing demand for young couples in particular to get on to the housing ladder”
The scheme which is operated through housing associations effectively means you are gifted a percentage of the purchase price as a deposit – provided on a future sale the same percentage is repaid. But with no interest payable this is an attractive proposition for many first time buyers who might struggle to save up the deposits now required by lenders.
There is a price limitation however – as the scheme is intended to stimulate the first time buyer sector of the market. Experienced property consultant at Caesar and Howie Vivienne Malcolm explains that the limits can sometimes be restrictive but do work. “The key thing is to know the price range in your local area – you can get these on the LIFT section of the Caesar and Howie website. Once you know the range you can concentrate on finding a property within it – and with lots of properties going under the asking price you would be surprised what can be bought under the scheme. And another benefit is that the scheme covers second hand and new properties – and some developers with the reduced prices they are seeking – have available new properties which qualify. I think with sellers willing to do deals – it can be win win for some first time buyers using the LIFT scheme.”
With sixty million pounds available to be lent under the scheme maybe up to 2000 purchases could be carried out using these funds. Managing partner David Borrowman comments “This is clearly a help to the market at this time – it has been the lack of first time buyers over the last 18 months which has slowed things down. If this group were to get buying again it would get everything moving since the sellers to this group would presumably also purchase.”
To find out more please contact 0845 855 4411.
Tags: First-time buyers, housing market, LIFT
Posted in Estate Agency | No Comments »
Monday, May 12th, 2008
Scottish first-time buyers looking to buy a house in Scotland may be pleased to hear that they may be immune to the rise in repossessions experienced throughout the UK.
According to Firstrung, people stepping onto the housing ladder for the first time may be able to weather the storm of repossessions currently being experienced in the UK.
Not only have many first-time buyers taken out an average mortgage of £115,000, but it is often shared between two people, making it easier to manage, Paul Holmes, operations director of Firstrung explained.
Mr Holmes stated that family homes, such as those with mortgages in excess of £250,000 may be more at risk, yet the circumstances for people only just getting into the housing market should remain stable.
“First-time buyers are the least likely group to be repossessed full stop, because it is their home, they have recently bought it and they can generally afford it,” he said.
It was recently recorded that a rise of 16 per cent has been experienced in the number of possession claims during the first quarter of 2008 by the Ministry of Justice.
Tags: First-time buyers, repossessions
Posted in Estate Agency | No Comments »
Thursday, May 8th, 2008
Those hoping to buy a house in Scotland may be interested in the advice offered by a housing industry expert over buying with unsecured loans.
Iammoving.com has advised homebuyers against using unsecured loans to buy property in the current market.
Peter Beckett, business development director, said that this is particularly relevant for people stepping onto the housing ladder for the first time, which may be significant to Scottish first-time buyers.
He said: “The whole housing market is at quite a turning point I think, whereby the prices are coming down and first-time buyers are looking for ways to be able to manage to get on to the ladder.”
Mr Beckett went on to say that unsecured debt is a “dangerous” option unless the house-buyer is “extremely confident” about their job security.
Gross lending in the UK slowed by eight per cent in the first quarter of 2008, according to the Council of Mortgage Lenders.
Tags: debt, First-time buyers
Posted in Estate Agency | No Comments »
Tuesday, May 6th, 2008
Scottish first-time buyers may be left in a negative equity position if they try and rush onto the housing ladder, if one organisation is to be believed.
Iammoving.com has claimed that first-time buyers should adopt a ‘wait and see’ approach to house buying, in that they should gauge the developments in the market before they make a purchase.
Peter Beckett, business development director of the company, said: “If you rush into something now, you could find yourself in a negative equity position, having borrowed in order to be able to afford to secure the property in the first place.”
Mr Beckett suggested taking out a loan within the family, using savings or inheritance as advisable ways of funding a first property. In addition, he suggested making the commitment in conjunction with someone else in order to ease the burden.
Meanwhile, research from Iammoving.com has revealed that one in three first-time buyers are gambling on their house purchases by taking out unsecured loans and using credit cards for deposits.
Tags: First-time buyers
Posted in Estate Agency | No Comments »
