Help to Buy Update

According to data released by the treasury, there have been 48,393 completions,  since the Help to Buy equity loan scheme launched in April 2013.  New build homes purchased through the equity loan scheme accounted for 29,829  completions  and a further 18,564 properties were bought using the Help to Buy mortgage guarantee scheme.  First time buyers accounted for 85% of transactions for both the equity loan and mortgage guarantee schemes.  The average purchase price across the entire scheme was £187,815.00 significantly below the national average.  Just 6% of all transactions have been in...

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Mortgage and Protection News (Spring 2014)

Available now on our website is the Spring edition of our newsletter “Mortgage and Protection News”.  In this issue we have an update on the UK housing market, with the Council of Mortgage Lenders forecasting mortgage lending of £195 bn this year which is around 15% higher than the estimated figure for 2013. There is also an update on the “Help to Buy” scheme, that sets out the differences between the “Mortgage Guarantee” and “Equity Loan” schemes.  We also look at what effect “Help to Buy” may have on the buy to let market. On the...

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95% Mortgage Options

Since the launch of Help to Buy 2 there is now a wider choice of products for borrowers with a 5% deposit, even outside the government backed scheme. Mortgage lenders may have been slow to join the second part of the Help to Buy scheme but this doesn’t mean that borrowers looking for a 95% loan to value mortgage should be limited to just a handful of mortgage lenders.  The aim of the second part of the scheme, where the government guarantee part of the mortgage borrowing, for house buyers with a 5% deposit, was to make mortgage borrowing more affordable and widespread for borrowers who...

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Housing and Mortgage Update

There are lots of positives within the housing and mortgage sector at the moment, in the latest issue of our newsletter (The Mortgage Autumn 2013), we set out how the latest mortgage deals on offer may be of benefit to you – perhaps to help finance a move or maybe for home improvements  to your existing home. With around 4.4 million mortgage borrowers currently on their lenders Standard Variable Rate – there may now be better deals available to help reduce their mortgage payments. On the protection front, we consider how critical illness cover can provide peace of mind. Elsewhere,...

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Student Property Lets

Student property lets can potentially offer a very good investment return.  University towns and cities are seeing lower property prices and rising rental yields.  As with any investment property you must research your market, close proximity to the university campus and easy access to the town centre are normally essential requirements. Students tend to be less fussy than professional tenants, older houses with plenty of rooms (where there are currently two reception rooms one can be converted to an additional bedroom).  Kitchens and bathrooms should be clean and modern, flooring must be...

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First time buyers drive home loans to five year high

First time buyers helped mortgage lending in January 2013 to its highest level for five years, according to figures from the Council of Mortgage Lenders (CML). Despite a seasonal dip compared with December 2012 , 38,300 mortgages were advanced in January, the strongest start to a year since 2008.  For the third month in a row, first time buyers accounted for 42 per cent of all house purchase loans.  The Bank of England’s Funding for Lending Scheme (FLS) that gives lenders access to cheaper funding, has helped boost the housing market.  FLS now appears to be the main reason why mortgage...

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