Brought to you by Cherry Reynard investigates where in the UK new nesters should look to settle First-time buyers, buoyed by higher wages, lower interest rates and government incentives, are jumping at the chance to become homeowners. More than 25,000 of them completed in January, up 5pc cent year-on-year. They may still be priced out of the most expensive UK cities, but there is plenty to tempt them in the North. Together researched the best cities for first-time buyers in the UK, and Sheffield topped the list, outstripping its southern rivals on affordability, lower bills and transport costs. At the same time, businesses still pay decent enough salaries to leave plenty of cash for leisure pursuits. The joys of the Steel City are myriad: green spaces and a thriving local music scene (which has produced talent as diverse as Arctic Monkeys, Def Leppard and Pulp), as well as two football teams to choose from in Sheffield United or Sheffield Wednesday – but beware … [Read more...] about The most attractive cities for first-time buyers
Home loans for first time buyers
Owning a home remains a pipe dream for many first-time buyers, as housing affordability in England and Wales failed to improve last year despite the well-documented slump in property prices. Between 2017 and 2018 it cost the average worker 7.8 times their annual wage to purchase a house in England and Wales, about the same as in 2016-17, according to data from the Office for National Statistics (ONS). Its affordability ratio is based on house prices in a given area divided by the average income of local residents. While the north east of England remains the cheapest place to buy, with houses costing five times average earnings, London's property market remains the most expensive, with he average dwelling costing 13 times annual earnings. The starkest contrast in affordability can be seen in Copeland in western Cumbria, and the London borough of Kensington and Chelsea, with housing in these areas costing 2.5 times and 44.5 … [Read more...] about Which areas have the most affordable homes for first-time buyers?
Exemptions for first-time buyers looking to lend outside of Central Bank rules are likely to run out before the end of the month, according to a leading mortgage expert. He has warned that house hunters are already being turned away by lenders because banks have met their annual caps, less than three months into the year. Central Bank rules allow 20pc of first-time buyers to borrow more than three-and-a-half times their income. The strict rules mean banks cannot breach this cap, despite excessive demand for housing. Mortgage broker Michael Dowling, of Dowling Financial, said he expects banks will have allocated their loan exemptions by the end of the month. Banks have not previously allocated all of their exemptions this early but some customers saw their loan-to-income applications turned away in April last year. Many banks had then allocated their 20pc of exemptions by July and August in 2018. Mr Dowling said this helps to feed the problem as it leads to an influx of borrowers … [Read more...] about First-time buyers face being turned away as exemptions ‘to run out in weeks’
THERE are two new mortgages for first-timer buyers that require just a 5 per cent deposit - and you only need to repay the interest for the first three years. Experts say the deals, which are being offered by Newbury Building Society to borrowers in the south of England, are the only interest-only mortgages out there requiring a 5 per cent deposit. Mortgage expert Ray Boulger, of broker John Charcol, says most lenders don't offer interest-only loans on mortgages requiring less than a 25 per cent deposit. An interest-only mortgage is where borrowers only repay the interest over the term. Since the crash, these loans have been few and far between due to the risk that customers won't be able to pay off the loan by their time their mortgage expires. Repayment mortgages on the other hand, where you repay the loan you've borrowed as well as the interest, are much more common - especially for first-time buyers. Where you can live to get Newbury's interest-only dealHERE are the postcode areas … [Read more...] about Rare 5% deposit interest-only first-time buyer mortgage offered by Newbury Building Society
MORTGAGE rates on two-year fixed deals have significantly dropped across the market over the past six months - and first-time buyers should consider locking in now. The average two-year fixed mortgage rate has fallen by 0.04 per cent, from 2.53 per cent in August 2018 to 2.49 per cent now, analysis has found. Moneyfacts.co.uk also found that the amount some lenders charge to take out a two-year fixed-rate deal has also fallen - from £1,105 in August 2018 to £1,029 now. This is despite the Bank of England base rate having increased from 0.5 per cent to 0.75 per cent in August last year. The comparison service firm reckons that strong competition from lenders to attract first-time buyers - who are seen as the "lifeblood" of the mortgage and property market - has pushed the overall rates on offer on two-year fixes down. For borrowers with deposits of 20 per cent to 30 per cent, two-year fixed mortgage rates have typically increased since last August. What's the difference … [Read more...] about Mortgage rates for first-time buyers at a six month low as lenders battle to attract new customers