FIRST-time home buyers will get a huge boost today — with Lloyds Bank’s first 100 per cent mortgage targeted at them. The bank will let them borrow enough cash to buy without a deposit. The Lend A Hand mortgage allows another family member to put up ten per cent of the loan as “security”. That amount is kept in a special savings account with Lloyds for three years, where it earns 2.5 per cent interest. It can then be withdrawn, together with money accrued on the amount. It means parents can help their kids without them having to fork out for deposits that average between £33,211 around the UK and £110,182 in London. PRACTICAL PLONK Flat bottles of letterbox-friendly wine soon to be landing on UK doormats BAG PRICE HIKE Morrisons raising price of 'bag for life' to 15p & introducing 20p paper bag CHECK YOUR CHANGE Do you have a 50p worth up to £840? We reveal the most valuable coins LET’S GET QUIZZICAL Beat the January blues with free live … [Read more...] about First-time home buyers to get huge boost — with Lloyds Bank’s first 100 per cent mortgage targeted at them
First time home buyer
Rising home prices are sending first-time home buyers to their parents for help with mortgage down payments. More than 26% of mortgage borrowers who used Federal Housing Administration-insured loans got assistance from a relative to make the down payment in the 12 months through September, up from about 22% in 2011, according to data released late last year as part of the agency’s annual report. The... … [Read more...] about More First-Time Home Buyers Are Turning to the Bank of Mom and Dad
TENS of thousands of first-time home buyers have had their purchases delayed because of a flaw in the Help to Buy Isa, research has found. In 2016 the savings accounts were described as a “scandal” when this newspaper disclosed that first-time buyers would not be able to use the money saved for an initial deposit on their new home. A flaw in the scheme means a 25 per cent government “bonus” on savings is not paid out until the sale has completed, leaving buyers to find the deposit money elsewhere, for example by borrowing from parents. Since 2015, when the accounts were first launched, an estimated 45,000 property purchases have been delayed as a result of this problem, according to financial services firm OneFamily. The research is the first time that the extent of the scale of the long-standing problem have been quantified. The Treasury was made aware of the flaw by this newspaper in 2016 but refused to fix it, … [Read more...] about Tens of thousands of first-time home buyers suffer delays caused by flaw in Help to Buy Isa
THE Help To Buy scheme offers a way for Brits to get on the property ladder by reducing the amount of cash they need to stump up for a deposit to buy a home. Here's everything you need to know about the government's scheme to help first-time buyers. What are Help To Buy schemes? Do I qualify? Help To Buy is a government scheme designed to help people get on the property ladder without the need for the large, up-front deposit which puts most young buyers off. It consists of Help To Buy equity loans and Help To Buy ISAs, both designed to offer first-time buyers a way to make their deposit more affordable. Which? reports that to qualify, you must: Have a deposit of at least five per cent Be looking to buy a home worth £600,000 or less (this limit changes for Help To Buy ISAs) Be purchasing a property you intend to live in most of the time How do Help To Buy equity loans work? One of the most popular ways to get a foot on the housing ladder, Help To Buy equity loans can be used … [Read more...] about What’s the Help To Buy scheme, why might it be scrapped, how do the government ISAs and Equity Loans work and do first-time UK buyers get dibs?
First-time buyers now make up more than half the market in their highest numbers for a decade, but rising prices are keeping them reliant on help from Mum and Dad. Data from Halifax revealed this year's first-time property buyers are getting hit by a 21 per cent hike in house prices over the last ten years, with the average price in the UK rising from £172,659 to £208,741. This is more than double the price increase faced by other types of buyers over the same period, with the average asking price for properties suitable for first-time buyers often outperforming the UK housing market. London has been the worst offender, with prices on first-time properties soaring 48 per cent since 2008 to an average of £419,608. Additionally, deposits have risen three-fold over that time to hit an all-time high of £114,952, 27 per cent of the average purchase price. Read more: Affordability gap deepens as London prices push away first-time buyers The UK's capital was followed by … [Read more...] about First-time buyers hit by UK house price hikes