Posts filed under ‘First Time Buyers’

Eight properties that first time buyers can afford

First time buyers can typically afford to buy a property worth £130,000, limiting them currently to a choice of less than 1,500 detached houses for sale in Britain.

First time buyer 2

Latest figures from the Council of Mortgage Lenders suggests the average loan size for first time buyers is £119,000, based on the national average salary of £26,500.

The calculation behind what properties such buyers can afford is based on them typically borrowing around three times their gross income, and a minimum deposit of 5 per cent.

It follows the Royal Institution of Chartered Surveyors suggesting this week that many middle-income families will soon be frozen out of a frenzied property market.

Here are eight houses with an asking price of less than £130,000:

1. Three bedroom detached house in Pontefract for £125,000

11.04.14 First 5

2. Two bedroom detached house in Margate for £115,000

11.04.14 First 6

3. Three bedroom house in Brimingham for £129,950

11.04.14 First 1

4. Three bedroom detached house in Stoke-On-Trent for £125,000

11.04.14 First 2

5. Three bedroom detached house in Nottingham for £115,000

11.04.14 First 3

Two bedroom detached house in Bungay for £95,000

11.04.14 First 7

Two bedroom detached house near Baschurch for £129,995

11.04.14 First 8

Three bedroom detached house in Bradford for £115,000

11.04.14 First 4

April 11, 2014 at 11:48 AM Leave a comment

Halifax Help to Buy mortgage rates unveiled

Britain’s biggest lender is expected to announce the interest rates on its Help to Buy mortgage rates next week.

House For sale

Halifax will offer rates under 5 per cent and accept applications by the end of the year, according to industry sources.

It will be welcome news to first-time buyers and homeowners who are looking to move with just a five per cent deposit.

As Zoopla revealed yesterday, borrowers can not only now apply for a mortgage using the new Help to Buy guarantees following the Government’s announcement at the beginning of this week, but they can also receive the mortgage money before the guarantees cut in on January 2.

It is impossible to default on the mortgage in the time between now and when the guarantees begin, so lenders are agreeing to hand over the cash before the deadline. If borrowers default after January 2, the lender will be covered by the mortgage guarantee.

A source told Zoopla: “We expect the rates to come in below 5 per cent and we expect applications to be accepted by Halifax before the end of next week.”

Under the new mortgage guarantee scheme, the buyer would only need a 5 per cent deposit.

The Government and the bank then jointly guarantees up to the next 15 per cent of the property’s value, in return for a fee paid for by the lender.

It follows the introduction of the first phase of Help to Buy – equity loans – earlier this year. Under this phase, the Government provides a loan of up to 20 per cent of the price of a property, with the borrowers providing a 5 per cent deposit and a mortgage of 75 per cent.

The scheme is proving popular with buyers as figures show registrations for new homes are up 25 per cent in a year.

Registrations for new homes climbed to almost 91,000 during the first eight months of this year, up from less than 73,000 during the same period a year earlier.

In particular, the three months from June this year – just two months after the scheme was introduced – saw a sharp increase compared to the previous year, up 15 per cent, according to insurers NHBC.

The latest news about Halifax comes as another high street lender reveals research about the biggest barriers to getting onto the housing ladder.

The survey by Santander suggested 16 per cent cite the most significant obstacle being not having enough money for a deposit.

October 4, 2013 at 10:06 AM Leave a comment

Average age of first-time buyers reaches 52

The average age of a first time buyer in London is 52, according to new research.

average ages

The findings caused an outrage on Twitter.

The research by Nutmeg also suggested the average age of a first time buyer in the south east is 48 and 45 in the south west. It is 35 in both the north east and north west.

The figures include those returning to the market alone, having previously held joint ownership of a property – such as divorcees.

It follows the launch of the Government’s Help to Buy initiatives to assist first time buyers – and those moving home – with small deposits of as little as 5 per cent of the value of a property.

October 3, 2013 at 5:36 PM 3 comments

Britain gives ‘thumbs up’ to Help to Buy on Twitter

Britain’s emotive response to the phrase ‘Help to Buy’ has been calculated and captured in a graphic – and it is overwhelmingly positive.

A tool tracking emotional reactions on Twitter shows users are more ‘excited’ and ‘elated’ than ‘stressed’ and ‘nervous’ about the scheme.

Reactions to Help to Buy on Twitter via http://www.csc.ncsu.edu/faculty/healey/tweet_viz/tweet_app/

Three of the most negative tweets include:

Three of the most positive tweets include:

And one that made us chuckle:

It follows the Government’s announcement to bring forward part of the scheme known as the Help to Buy mortgage guarantee. Borrowers with small deposits of just 5 per cent will be able to apply for a mortgage under the scheme, from October 7 – three months earlier than planned.

To use Tweet Sentiment Visualization, visit http://tinyurl.com/cue5uu4 and type “Help to Buy” into the keywords box, (using quotation marks to get an exact phrase match).

September 30, 2013 at 5:38 PM 1 comment

Help to Buy good or bad for new home registrations?

Important Update: 29/09/2013

The second phase of the Help to Buy scheme is now being launched three months earlier than originally planned. For the most recent Help to Buy information please click here and see our most recent articles.

Applications for loans from the help to buy scheme’s second phase will now be brought forward to the week beginning 7 October but the loans will not be paid out until 1 January 2014.

Original article below:

Borrowers are enjoying the benefits of the Government’s Help to Buy Scheme as registrations for new homes rise 25 per cent in a year.

The scheme was introduced earlier this year and aims to help those with a small deposit buy a new home.

Latest figures show registrations for new homes climbed to almost 91,000 during the first eight months of this year, up from less than 73,000 during the same period a year earlier.

Registrations for new build homes rise 25%

In particular, the three months from June this year – just two months after the scheme was introduced – saw a sharp increase compared to the previous year, up 15 per cent, according to insurers NHBC.

Richard Tamayo, NHBC’s commercial director, said: “Our latest statistics continue the pattern we have seen over the course of the year, with new home registration figures showing a noticeable improvement on recent years but still considerably down on pre-economic downturn figures.

“These figures are the highest for this period since 2007 which is obviously encouraging news, but illustrates the significant difference in the number of new homes being built six years ago and now.”

It follows the Government announcing measures to potentially rein in Help to Buy.

The scheme provides buyers with a low cost loan of up to 20 per cent of the purchase price on houses worth up to £600,000.

The Bank of England will be able to modify parts of the scheme to keep it in check. It will be allowed to review the scheme and could reduce the £600,000 cap, so fewer homes are affected.

Jeremy Blackburn, head of policy at the Royal Institution of Chartered Surveyors, said: “The range of measures announced under the ‘Help to Buy’ scheme to kick start the housing market were much needed.  However, RICS have cautioned that Phase 2 in particular, extending the scheme in January 2014 to include lending on second hand homes, could increase risk of a ‘bubble’ particularly in London and parts of the South East.

“Ultimately though, housing supply is crucial to a healthy market. We need a plan as to how government and industry are going to close the housing deficit – through boosting housing supply in all tenures – whether owner occupied, market rent, affordable rent, shared ownership schemes and of course a genuine institutional private rented sector.”

Location: London

Price: £7,950,000 for a six bedroom detached new house in London

Location: Bath

Price: £575,00 for a four bedroom detached new house in Bath 

Location:  Abingdon, Oxford

Price: One bedroom new house for sale for £205,000

 

September 27, 2013 at 1:44 PM 2 comments

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