Getting on the Property Ladder

Choosing to buy a house is one of the biggest decisions you are likely to make in your lifetime. There are many factors that influence a house purchase, these include: finances, housing market conditions, and mortgage rates.

On 30^th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.

With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19^th September to keep the base rate at 5%.

Buying a property, especially in the current climate, is a big decision for first time buyers. We have listed a few tips that can help you buy your first propertyy

If you are struggling to get over the hurdle of saving enough deposit due to being in a rental property, but wish to purchase your own home, you may be able to with a 100% mortgage. You will need to meet certain requirements and be financially stable.

Getting a foot on the property ladder is becoming more and more difficult for people of all ages. Not only is the price of property in many parts of the UK continuing to rise, but the majority of businesses still only pay their employees minimum wage, so many fear that they will never be able to own their own home. 

Moneyfacts, the independent mortgage market monitor of all things ‘mortgage’ has reported that overall mortgage availability rose in January 2021, to 3,215 products!

There is some good news for those keen to use the government’s existing Help to Buy scheme which is due to be replaced by a more restrictive scheme in April 2021.

The chancellor has announced a temporary holiday on stamp duty up to £500,000 as part of a number of measures to help stimulate the economy. We have listed below the key facts following this announcement.

The government had intended to abolish the scheme completely in 2023, but are now being asked to reconsider in the light of current events.

Generally referred to as ‘the base rate’, when it falls it is usually (but not always) an indication that lending rates generally will also fall.

A Lifetime ISA, like other ISAs (Individual Savings Accounts) is a savings account, the interest on which is shielded from tax.

Shared ownership is nothing new but it is becoming more popular as house prices continue to grow out of the reach of even well paid individuals - especially in the South East of England.

The scheme works on the basis that rather than having to put together a deposit and mortgage to purchase the whole of the property, a buyer can now purchase part of the property with the other 25 - 75% of the home being owned by a third party under the terms of this scheme.

The shared ownership and Help to Buy schemes are only available through recognised and authorised agents. Mortgage Required is delighted to announce that we are now able to offer our clients mortgages for both schemes as approved Help to Buy mortgage advisers.

With ‘Help to Buy’, the Government lends you up to 20% of the cost of your newly built home, so you may only need a 5% cash deposit and a 75% mortgage to make up the rest.  To reflect the current property prices in London, from February 2016 the Government is increasing the upper limit for the equity loan it gives new home-buyers within Greater London from 20% to 40%.

Just as all memories of the “Help to Buy” ISA announced in the last budget were fading, the Treasury has named the first six banks and building societies that will offer first time buyers said “Help to Buy ISA.” The Treasury has confirmed that the list is not intended to be exhaustive and that there is still time for other providers to join the scheme and offer the account to savers.

Two years ago the Government launched the first phase of it’s "Help to Buy" scheme, which has now seen more than 80,000 borrowers purchase a home.

Through the first phase of Help to Buy, (let’s call it H2B1), the Government provides an equity loan worth up to 20 per cent of the value of a new build home, interest free for the first 5 years, which can be repaid at any time or when the home is sold, with the borrower putting up a 5 per cent deposit.