Sunday, November 2nd, 2008
‘I would love to buy my own house but I just can’t afford to save for the deposit. I am also worried that I won’t be able to pay my mortgage every month.’ Would-be first time buyer, Brighton.
The Council of Mortgage Lenders has recently revealed that the number of first-time home buyers has decreased by 48 per cent up to July 2008, compared to the same time last year. With a recession looming it is hardly surprising that many first time buyers see no option but to postpone their move.
Whilst the economic forecast may sound depressing, the Government has introduced a variety of initiatives aimed at helping first time buyers find their footing on the property ladder;
Stamp Duty
In a move that some critics have described as ‘too little, too late’, the Treasury recently announced that there will be a one-year stamp duty holiday on houses worth up to £175,000. This policy will apply for all transactions completed from now until September 3rd 2009. This means that a buyer can save up to £1750.
Homebuy Direct *
Where a first time buyer’s household income is less that £60,000.00, they may be eligible for an equity loan, co-funded by the Government and the housing industry, for up to 30 per cent of the price of a new-build property. The loan will be interest free for five years and a fee may be payable at the end of this period. The Government hopes to be able to assist up to 10,000 First-Time Buyers through the Homebuy Direct scheme.
Affordable Housing*
Shared Ownership. The buyer is able to purchase a share of a property, whilst a Housing Association purchases the other share. The buyer then pays a small rent to the Housing Association on the share that they don’t buy. This initiative is particularly useful to buyers on a low income who are unable meet large monthly mortgage installments.
Shared Equity. Under this initiative, a Housing association lends money to a home owner to assist them with their mortgage payments. The Homeowner then repays the Housing Association at a low interest rate.
Sale and Rent Back. The Housing Association pays off the homebuyer’s entire mortgage and rents back the property at an affordable rate.
At Burt Brill and Cardens we understand that when you are buying a property for the first time, the legal paperwork involved can seem daunting. We will take the time to answer all of your queries, no matter how small, whether in person, by telephone, letter or email. We assure that we will keep you notified of progression, move your transaction on without unnecessary delay and keep costs to a minimum.
If you would like advice on your property purchase then contact Marie Stock now. We have special rates for first time buyers.
* We are unable to advise on the suitability of any of the above mortgages. If you ask us we will you in touch with an Independent Financial Advisor who can proivide you with advice.
© Copyright 2008 Burt Brill and Cardens Solicitors