Might there be a reason for those thinking of obtaining a home for the first time to get excited? A first time buyer who wants to evade paying stamp duty can now make a decision on whether to spend nearly £250,000 on their first home as opposed with the previous sum of £125,000.
Well if money is not an issue then why not?
Latest lending numbers prove that despite the slight increase on mortgage lending it is actually however a long way from what it was five years ago. Quite a few of first time buyers have little or no funds to spare. A lot perhaps have debt difficulties and have got to request Debt Management advice in several forms.
Two of the common Debt Consolidation processes are IVA’s, for England and a Trust Deed if you live in Scotland. These are legally binding agreements where payments are made in the form of contributions so that a person’s creditors obtain a return of the money lent. What the chancellor does not impart to us is that the banking companies will no longer entertain mortgage lending for people who had to get help with their monetary difficulties in this way.
Even if a lot of home movers have had to perform some Debt Consolidation the banking companies will look for a reason to reject a mortgage claim. All too frequently the viewpoint with the banking companies is that they like the quality applicant and no one with some slight history of difficulties.
The housing market is trying to mend itself. People are desperate to get on the property ladder. This may only take place though if the banking companies take an open viewpoint of clients who have had to seek the assistance from a Debt Management firm. Many argue that if they have been able to get some Debt Consolidation through some of the schemes about this would at least reveal they plan to act correctly.
In the past people who were even bankrupt may get a mortgage and in consequence struggle on with the housing market. But, now, if you happen to be in an IVA or Trust Deed, or perhaps finished one in recent times, the bank will laugh you out of the building. The economy does not need a return to hasty lending but the housing market is on its knees and this report today from the chancellor is nothing but a shot to rescue the government votes.
The irony is that it is the perfect instance to buy a home with home prices being competitive. If a first time buyer is thinking of borrowing money at the value of a king’s ransom, they have got to own deep pockets.
Vanished are the days when saving the mystical 5 percent might unlock the doors to your new home. These were the times when you may be cared for like a celebrity when you hand over your precious deposit. In our day the banking companies on average will merely offer a first time buyer a mortgage if you have a deposit between ten to fifteen percent.
Let’s wish that a difference in the lending procedure may enable the housing market to return to steady growth. The banking companies should be a little more heedful of the fact that they now work for the British tax payer.
Let’s see when these initial batches of wealthy new home owners break the bank on their £250,000 investment.
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