First time buyer advice is now in even greater demand. With the housing market currently seeing a sense of stimulation from the newly introduced stamp duty holiday, first-time buyers are keen to take advantage and effort in securing their first home, even turning to the bank of Mum and Dad for support.
With strict criteria and deposit restriction now being implemented by lenders, what hurdles await these young buyers and how do they avoid them?
The government has implemented great support to those seeking to buy their first property, such as the aforementioned stamp holiday. By providing a temporary halt on standard stamp-duty (until March 2021) for purchases below £500k within England, they have added to a collective support arm that includes the Help to Buy Equity Loan Scheme which also has been extended enabling FTB’s to be able to buy new build properties.
These alone are good motivations for first-time buyers to motivate themselves into moving now, with house prices steadily rising it makes much more sense to strike whilst the iron is hot with local estate agents Stockport.
The high demand for mortgages and remortgages due to the stamp duty holiday could be making things more difficult for FTB’s, especially with an increase due to pent up desires following lockdown restrictions. This has caused some lenders to withdraw some products, as a result, to avoid becoming buried in fresh applications and jeopardising their customer service standards. Of these products, many are high loan to value products that require smaller deposits favoured by buyers.
This does indicate that many FTB’s will find it harder to secure an affordable mortgage, including some restrictions around deposits being applied. Some lenders are still accepting deposits from family members but recent moves to restrict these are currently in play.
This does indicate a worrying trend for first-time buyers who rely on the bank of Mum and Dad to help them get started on the property ladder as more and more lenders look to incorporate this model.
There are still lenders that offer solid deals to first-time buyers but finding a mortgage can be harder. In taking into account all costs in buying a property, understanding government support and which lenders can provide a mortgage, you need to know where you stand and the support available.
By discussing concerns and seeking buying a property advice, you can discuss your situation with the team at Joules Estate Agents, who can best advise and provide the assistance and contact to help you take that first important step. Contact the team today for first time buyer advice.