HUNDREDS of thousands of cash-strapped first-time buyers are missing out government help which could get them on the property ladder for less. Since the government's shared ownership scheme was launched in 2013, only 6 per cent of buyers have taken advantage of it, according to new research. That means that 94 per cent of first-time buyers are passing up the opportunity to get on the property ladder through the scheme. The new figures from TotallyMoney are based on a survey of 1,000 homeowners, which is only a handful of the 359,000 first-time buyers in the UK, according to Halifax research. So proportionally, we've worked out that that's a whopping 349,600 first-time buyers who are overlooking the scheme completely. At least 35 per cent of 18 to 24-year-olds were put off the scheme because they were worried about hidden fees that might surface later on. And more than 40 per cent of the people surveyed admitted that they needed financial support from friends and family when it came to … [Read more...] about Thousands of first-time buyers missing out on government funding – how to get help buying a home
Help buying a home
Ross Clark 8 May 2018 3:17 PM 8 May 2018 3:17 PM Share Twitter Facebook LinkedIn Email Whatsapp The Resolution Foundation has called for 25-year-olds to be paid £10,000 to help them afford homes, saying the ‘generational contract’ between young and old has broken down. But is it really harder for young people to buy a home now than it was 30 years ago? House prices were booming in the first half of 1988, when a typical first-time buyer home could cost £50,000. That same property now, according to the Halifax UK House Price Index, would cost £234,850. Since 1988, the Retail Prices Index has increased 2.7 times, according to the ONS, so, in real terms, £50,000 in 1988 is now worth £135,000 – making it harder to afford a deposit. As regards mortgage repayments, a typical rate in 1988 was ten per cent (two per cent above the Bank of England base rate). Fixed rate mortgages were not generally available. So, the … [Read more...] about Is it really harder for young people to buy a home than it was 30 years ago?
It's not about lattes and avocados on toast. In the past 20 years house prices have soared compared to earnings, leaving the dream of escaping the landlord and having a home of your own “almost unreachable” for people without help. That's according to new figures from the Office for National Statistics, which has just published a major study into housing affordability in England and Wales . Its figures show that last year it cost 7.6 times the average salary to buy a pre-existing home, and 9.7 times to buy a new build. By contrast, existing homes in 1997 cost just 3.4 times your salary, while new builds then set people back 4.6 times their annual earnings. And those are just the averages. “The price of entry to homeownership in the UK has soared to almost unreachable heights,” said Shaun Church, from mortgage broker Private Finance. “The latest housing affordability figures paint a worrying picture for those hoping to make their first step onto the … [Read more...] about ‘Almost unreachable’ – frightening new figures show how hard it is to buy a home
(StatePoint) With heightened talk of rising interest rates, many prospective homebuyers are understandably concerned about whether it’s the right time to purchase a home.Indeed, you may be wondering if you waited too long and let the historically low interest rates pass you by or if you can still find a dream home that fits within your current budget.Experts say that it’s true that rates are at their highest in almost four years and that this year has been particularly rough, however, it’s not all bad news. Rates are still well below the levels seen 10, 20 and 30 years ago. “Rates are still low by historical standards, helping make mortgage payments affordable for many, but your wallet might take a hit if rates continue to go up,” says Freddie Mac deputy chief economist, Len Kiefer.How big will the hit be? Assume you buy a home with a 20 percent down payment, take out a $200,000 mortgage and are getting a 30-year fixed-rate mortgage. At a 4.5 percent … [Read more...] about Interest Rates are Rising: Should You Buy a Home or Wait?
(BPT) - So you want to buy a home? Congratulations! Homeownership can be a wonderful accomplishment and milestone in your life. But be forewarned that it might not be easy. The process is complicated and often comes with a few hurdles.However, if you follow the three steps below, you can make your goal a reality in 2018.1. Understand your expenses and get preapproved Making the transition from renting to buying a home can have a significant impact on your monthly budget. That’s why you need to get your finances prepared before you buy a home. Entering numbers into a mortgage calculator is sometimes helpful, but it can leave you with an overly optimistic picture.A common rule of thumb is that your monthly mortgage payment should not exceed about 30 percent of your monthly income. Before you begin the process of buying a new home, review your monthly income and expenses and decide if this percentage works for your household.If you decide to use a mortgage calculator, remember that … [Read more...] about Buy a home in 2018 with these 3 steps