May there be a cause for those considering purchasing a home for the first time to get excited? A first time buyer who wishes to avert paying out stamp duty may now decide on whether to pay up to £250,000 on their first property in comparison with the previous total of £125,000.
Anyhow if money isn’t an issue then why not?
Latest lending information prove that even with the slight growth on mortgage lending its nevertheless a long way from what it was five years ago. A good deal of first time buyers have little capital to spare. Some still have debt problems and ought to seek Debt Management advice in numerous kinds.
Two of the usual Debt Consolidation techniques are IVA’s, for England and a Trust Deed if you reside in Scotland. These are legally binding agreements where payments are made in the form of contributions to ensure a person’s creditors acquire a return of the money lent. What the chancellor does not report to us is that the banks will no longer entertain mortgage lending for people who had to get relief with their fiscal problems in this way.
Still if loads of home movers have had to do some Debt Consolidation the banks may look for a basis to decline a mortgage submission. All too frequently the way of thinking with the banks is that they would like the quality applicant and none with some slight history of problems.
The housing market is trying to mend alone. People are anxious to get on the property ladder. This will only take place though if the banks take an open opinion of clients who have had to search for the aid from a Debt Management organization. Lots argue that if they have managed to obtain some Debt Consolidation through quite a few of the schemes available this would at least show they wish to act dependably.
In the past people who were even bankrupt could obtain a mortgage and as a result struggle on with the housing market. Yet, now, if you’re in an IVA or Trust Deed, or maybe completed one recently, the bank will laugh you out of the building. The financial system does not need a return to hasty lending but the housing market is on its knees and this news today from the chancellor is nothing but a shot to save the government votes.
The irony is that it is the perfect point in time to buy a property with property prices being competitive. If a first time buyer is thinking of borrowing money at the rate of a king’s ransom, they ought to have deep pockets.
No more are the days when saving the mystical 5% could unlock the doors to your new family home. These were the times when you would be dealt with like a celebrity when you hand over your precious deposit. At the moment the banks on average may only offer a first time buyer a mortgage if you have a deposit between 10-15%.
Let’s trust that a difference in the lending guidelines will permit the housing market to return to steady growth. The banks must be a little more aware of the fact that they now work for the British tax payer.
Let’s see when these first batches of rich new property owners break the bank on their £250,000 investment.
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