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First Time Property Buyers News: 90 per cent LTV rates falling

Thu, 17 May 2012 11:30:58 +0100

Average rates on 90 per cent loan to value (LTV) mortgages have dropped over the past five years.

Research from Moneyfacts.co.uk shows that the current average interest rate on such mortgage deals is 5.55 per cent, down from 5.98 per cent last year and 6.38 per cent in May 2010.

There is also much more availability of 90 per cent LTV mortgage products for first time buyers, with 299 on the market at the moment, up from just 76 in May 2009.

"Demand for high LTV mortgages is, and always will, be high. Lenders have shown they recognise this by edging cautiously back into this area of the market with some competitive deals of late," said Louise Holmes, spokesperson for Moneyfacts.co.uk.

"However, strict underwriting and credit checks mean that approvals are at a premium."

A number of lenders have also introduced mortgage deals at 95 per cent LTV under the government's NewBuy scheme.

Santander recently announced a deal which offers an interest rate of 5.49 per cent over three or five years with a five per cent deposit.

First Time Property Buyers News

First Time Property Buyers News: High LTV mortgages are a sign of a good time to buy

Tue, 15 May 2012 16:50:28 +0100

First time buyers hoping to take their first steps on the property ladder have been advised that when high loan to value (LTV) mortgages start appearing it is normally a good time to make a purchase.

According to Paul Holmes, chief executive officer at Firstrung, when lenders start offering mortgages with an LTV of 90 per cent and above it is a sign that lenders are eager for business.

"I would think that when first-time buyers see that availability of product readily available, it could be an indication that it is a good time to buy, but as to when that will happen, I really don't know," he added.

A number of lenders have announced mortgages at 90 per cent LTV in recent months including Santander which announced a five year fixed rate deal at 5.99 per cent for people with a ten per cent deposit.

Last month saw Moneyfacts reporting that the number of mortgages available at up to 95 per cent LTV has more than doubled during the past 12 months, rising from 27 to 61 in April.

First Time Property Buyers News

First Time Property Buyers News: Santander launches NewBuy mortgages

Mon, 14 May 2012 16:54:19 +0100

Santander has launched its range of NewBuy mortgages which at 95 per cent loan-to-value will help first time buyers get a foot on the property ladder.

The fixed rate deals are available over three, five or seven years with an interest rate of 5.49 per cent for the two shorter deals and 5.99 per cent over seven years.

All three come with an arrangement fee of £99.

The products also come with the Homebuyer solution which includes free valuation plus £250 cash back on completion.

Phil Cliff, director of Santander Mortgages, said: "Santander is delighted to be joining the NewBuy scheme and has launched a range of competitively priced products with low upfront fees which reflect our commitment to NewBuy and customers, particularly first time buyers looking to get a start on the housing ladder.

"The range will have wide appeal and is designed to meet the needs of both first time buyers looking to buy their first home and existing homes owners who are considering moving house."

The government's NewBuy scheme was launched on March 12th with the first mortgage by broker Mortgage Talk being arranged last month.

First Time Property Buyers News

First Time Property Buyers News: People optimistic about detached homes

Thu, 10 May 2012 16:30:34 +0100

Brits today have higher long term property aspirations than people did in the 1980s and 1990s, according to new research.

A study by AA Home Emergency Response found that first time buyers who have purchased property in the past four years are positive that they will upgrade in the future, with 37 per cent aspiring to have a detached house.

In comparison, 33 per cent of first time buyers in the '80s and 32 per cent in the '90s thought they would own such a property.

Buyers today also think that they will move into a much larger home, with a greater number of people expecting to move into a four or five bedroom house one day.

"This research has revealed that the troubles in the housing market over the last three years have not dented the aspirations of recent first time buyers. In fact, new entrants to the market are more positive about their long term prospects than those entering in the last thirty years, something which could bode well for recovery in the market," said Tom Stringer, head of AA Home Emergency Response.

Halifax's latest Housing Market Confidence tracker also hinted at optimism in the housing market with one in three people feeling that house prices nationally are set to rise.

London Property Market News

First Time Property Buyers News: Concrete Cows welcome first time buyers

Fri, 04 May 2012 14:53:03 +0100

Would-be first time buyers look at a number of towns and cities before making the plunge into property ownership, but it seems increasingly they end up buying in Milton Keynes.

The Buckinghamshire satellite town, famed for its myriad of roundabouts and its concrete cows, is far from the most fashionable place in the British Isles for those making their maiden voyage into the property world, it's the tops.

This is according to a new study by credit reference agency Experian, which found that Milton Keynes has the highest proportion of first time buyers in the country.

Only established in 1967, the town has swelled to a population of 245,000 and almost one in ten homes (9.5 per cent) there are owned by first time property buyers.

David Hill, chief executive of Milton Keynes Council. said: "Milton Keynes is a very prosperous place which is flourishing despite these tough economic times.

"The fact that we have so many new businesses opening or relocating here means that we can offer first time buyers much needed job security."

Second on the list for first time buyers is Slough, a town often ridiculed for the subject of a poem by Sir John Betjeman and the setting of the BBC series 'The Office'.
Aldershot, Dartford, Basingstoke and Crawley have all fared well with first time buyers in recent times.

Other first-time buyer hotspots will be named today as Aldershot, Dartford, Basingstoke and Crawley.

London dominates the list of places where first-time buyers are least likely to be have any luck, particularly boroughs such as Hammersmith, Kensington and Chelsea.

At the other side of the scale, three districts of London make up the places where first time buyers are least likely to be found.

Hammersmith, Kensington and Chelsea all have average asking prices which are well beyond the means of the average first time buyer earning an estimated £21,000 per annum.

Indeed, a property in Kensington averages out to cost £1.3 million, while the equivalent home in Milton Keynes would be little more than £200,000.

Mortgage and Home Loan News: Halifax offers to pay half of stamp duty for FTBs

Wed, 02 May 2012 14:59:17 +0100

Despite the stamp duty holiday for first time buyers (FTBs) ending in March, the Halifax has said that it has a solution for people looking to make their maiden move into the property market.

The bank is set to a launch a new range of mortgage products which pay half of the stamp duty liability on the purchase of properties up to £250,000.

This would reduce a buyer's costs by up to £1,250.

A recent study by the Halifax found that 49 per cent of all people buying a home during the first three months of this year paid between £125,000 and £250,000, although in London the rate was slightly lower at 39 per cent.

Stephen Noakes, mortgage director of the Halifax said "We have seen over the last two years that support provided to buyers has a positive impact, with the stamp duty exemption helping over 40 per cent of first time buyers.

"We're keen to assist homemovers to purchase their next home, and support with their stamp duty bill does just that."

Mortgage and Home Loan News

UK Property Portal News: Simple improvements are best way to maximise property value

Tue, 01 May 2012 11:13:22 +0100

People looking to sell their home quickly should think less about cleaning the place up and spend more time buying flowers and painting doors.

This is according to mortgage lender HSBC, whose research found that millions of people plan on spending the spring bank holiday doing home improvements so that they can attract both first time buyers and experienced property professionals.

Some 52 per cent will attempt to improve the appearance of their home this May Day bank holiday, but according to HSBC the best way to add pounds to a property is to simply de-clutter, although cutting grass and repairing paint chips will increase the chances of a sale.

Peter Dockar, Head of Mortgages at HSBC, said: “Many householders spend the Bank Holidays on DIY projects to help boost property value and saleability.

“However it is often the smaller jobs like painting the front door that can make all the difference when looking for a quick sale.”

UK Property Portal News

First Time Property Buyer News: First NewBuy purchase is completed

Mon, 30 Apr 2012 17:11:11 +0100

New build broker Mortgage Talk has arranged the first NewBuy mortgage for first time buyers in the country.

The government backed scheme, which enables people to gain ownership of their first home by offering them the chance to put down a deposit of just five per cent, was launched on March 12th.

And 27-year-old Henna Rai became the first person to complete under scheme last week when she took ownership of a new Bovis Home in Peterborough.

She said: “I was done with renting and living with other people and felt it was time to do things on my own and stand on my own two feet.

"This is my first place and it really feels like a new chapter of my life – it’s great to be spending money on my own mortgage rather than someone else’s.”

Lisa Burns-Kent, head of new homes sales at Mortgage Talk, said that the firm has seen a influx of interest since the scheme launched and she expects many more completions to go through in the next few months.

First Time Property Buyer News:

First Time Property Buyer News: First time buyers should do all they can to improve their credit score

Mon, 30 Apr 2012 10:43:04 +0100

As well as ensuring that they have saved up an adequate deposit, first time buyers should do all they can to ensure their credit history is in tip top shape.

Catherine Hearnden, director of MyMortgage Direct, says that while finance is becoming more available for would-be first time property buyers, lenders are still only looking to take on those with a exemplary financial past.

"What we are finding is that your credit file has to be absolutely squeaky clean, so if you think that you are going to start saving up for a deposit and you might be thinking of taking out a mortgage in the next few months or few years even, then you need to check your credit file and check what is on there," she said.

"We have found that there has been an increase in identity fraud which stops you getting a mortgage because, until it is sorted out, the lenders won't lend. We have seen an increase in them refusing loans just because of tiny defaults, poor credit and for not being on the electoral role."

Contrary to what you might think, having no credit whatsoever can also work against you. If you haven't ever borrowed money before via things such as credit cards and personal loans, it is likely your credit score is low due to a lack of history.

Those who have had a moderate level of debt and have always maintained their payments on time generally perform better when it comes to credit scoring.

First Time Property Buyer News

First Time Property Buyers News: Buying with friends and family could be an option for first time buyers

Thu, 26 Apr 2012 12:46:07 +0100

Potential first time buyers who are struggling to raise the deposit needed to get a mortgage should not rule out buying with family and friends as a way around the problem, the National Association of Estate Agents (NAEA) has said.

However, because buying a house is often the biggest move a person makes in their entire life, weighing up all options and ensuring that agreements are set out correctly is imperative when it comes to making a joint purchase.

Wendy Evans-Scott, president of the NAEA, said that although more mortgages are becoming available for first time buyers, the government has not helped their predicament recently by refusing to extend the stamp duty holiday previously available on purchases up to £250,000.

However, she added: "Splitting the cost of a substantial deposit, maintenance and mortgage repayments could make owning a home a more realistic aim for many would-be first time buyers.

“I would, however, advise anyone looking to enter into joint ownership that a transparent relationship between all parties is imperative if the process is to go smoothly. That is a vital step whether you are buying with family, friends or another third party."

To help first time property buyers, NAEA has set out five key recommendations. These are;

Consider your mortgage options – With a combined income and higher deposit more products will be available to you so researching and understanding how interest rates work and weighing up the pros and cons of varying fees is of the utmost importance.

Think about what will happen if things go wrong – This could involve getting a solicitor to draw up a co-ownership contract between you and the person you are buying with and an agreement is already in place if one party’s circumstances change.

Keep all your paperwork in order – Effectively this is a business agreement between the two of you. Ensure that all paperwork is drawn up in both names and all parties have easy access to them.

Make an inventory – This will ensure that if things go wrong you will easily know who owns what.

Be realistic with timeframes – If you are buying with a friend it is likely that this relationship is only temporary, so look at this as more of a short-term investment rather than a home for life.

First Time Property Buyers News

First Time Property Buyer News: Five year optimism for first time buyers

Wed, 25 Apr 2012 12:40:17 +0100

Optimism amongst potential first time buyers is growing and many expect to take their first steps on the property ladder within the next five years, a new study has claimed.

According to the Post Office, one in eight people (12 per cent) say they hope to buy their first home in the next half-decade.

Of that number, 22 per cent said they will be looking to buy in 2013, while 14 per cent are expecting to own a home before the end of this year.

Mike Cook, head of mortgages at Post Office, said: "First time buyers are the life blood of the property market and our research shows that challenging stories about first time buyers and wider economic issues have not dampened aspirations to get on the housing ladder.

“It is also interesting to see that despite the resurgence of 10 per cent deposit mortgages recently, the average first time buyer is aiming for the cheaper rates available at 15 or 20 per cent deposit - even if it takes that bit longer to save."

Some 45 per cent of those questioned said that they plan on saving up their own deposit. 28 per cent said that they will get help from their partner, while 16 per cent are hoping to receive help from their parents.

First Time Property Buyer News

First Time Property Buyer News: People staying in rental properties so they can build a bigger deposit

Mon, 23 Apr 2012 15:59:03 +0100

People are looking to stay in rental properties for longer because they are putting off home ownership until later in life.

A new study from Moneysupermarket.com shows that 40 per cent of British adults are planning on staying in their existing rented property until they have saved up a deposit and the average age of a first time buyer is now 37.

Clare Francis mortgage spokesperson for Moneysupermarket said: "While we have seen an increase in the number of mortgages available up to 90 per cent of the property's value, the rates on these deals are still higher than if you can scrape a larger deposit together.

"On the plus side the flat housing market means aspiring homeowners can take their time to build up a deposit as they don't have to worry that prices will become unaffordable if they don't buy now.”

Moneysupermarket revealed that there are currently 209 mortgage products available to first time buyers at up to 90 per cent loan to value (LTV).

First Time Property Buyer News

First Time Property Buyers News: Rightmove's FirstBuy page reaches one million hits

Thu, 19 Apr 2012 15:41:07 +0100

Online resource Rightmove says that the number of enquiries on its specialist FirstBuy page has hit the one million mark.

The page was set up following the launch of the FirstBuy scheme last year and has proven to be a major success among first time buyers looking for information on which kind of properties are available using the incentive.

FirstBuy works by giving first time buyers the chance to purchase a new home on a shared ownership basis with the government and the developer providing an equity loan worth 20 per cent of the property value.

First time buyers are then required to provide a five per cent deposit of their own, with the remaining 75 per cent raised on a mortgage.

Rightmove director Miles Shipside told MyIntroducer: “Hitting one million page views within a year of launching the FirstBuy homepage really underlines the pent-up demand among first-time buyers to own the roof over their heads.

“It also shows what a leg-up initiatives like FirstBuy can provide in enabling first-time buyers to get onto the housing ladder, and how Rightmove acts as a focal point for home-hunter research and enquiries about those schemes.”

First time property buyer news: 95 per cent mortgage availablity on the increase

Tue, 17 Apr 2012 14:20:00 +0100

The stamp duty holiday for first time buyers may have recently ended but there is still some cheer for people looking to make their maiden voyage into the property market.

Moneyfacts is reporting that the number of mortgage deals available up to 95 per cent loan to value (LTV) has more than doubled during the past 12 months, rising from 27 to 61 today.

At the same time the amount of products available with a maximum LTV of 90 per cent has also increased from 228 last year to 316 this month.

Louise Holmes, spokesperson at Moneyfacts.co.uk, said that the figures spelled good news for first time buyers, particularly ones that have struggled to raise a significant deposit.

"Over the past couple of years we have seen the high LTV mortgage market stage something of a comeback, mainly due to high demand from borrowers with limited deposits," she said.

"The first time buyer market is often considered to be the life-blood of the housing market and mortgage lenders recognise this."

First Time Property Buyer News: First time buyers have it hardest in rural areas

Fri, 13 Apr 2012 14:53:50 +0100

First time buyers in rural areas have it the hardest when it comes to getting a foot on the property ladder.

This is according to Martin Collett, operations director at the English Rural Housing Association, who believes that house price rises in countryside towns and villages have risen so sharply in recent years that they are out of reach of many local people now.

“In rural areas, what we find, particularly for local households who perhaps work locally, is that the income to house price ratio is still very high,” he said.

"That barrier [means] the ability to access a property on the market is more difficult in rural areas for first time buyers.”

Despite this, a recent study by Knight Frank found that prospective buyers in rural areas grew by 32.5 per cent in the past year while actual sale agreements were up by 13 per cent.

First Time Property Buyers News: Hunger for property continues

Tue, 10 Apr 2012 12:29:41 +0100

The stamp duty holiday afforded to first time buyers ended last month, but this has not quashed people’s hopes of getting a foot on the property ladder.

Until the 24th of March, people looking to buy their first home were exempt from paying stamp duty on purchases up to £250,000.

However, an expiration of that levy now means that they are eligible to pay the same levels of duty on transactions above £125,000 that everyone else is liable for.

Still, according to Stuart Law, chief executive of Assetz, first time buyers’ hunger for home ownership has not been supressed and they are now working harder than ever to ensure that their dream comes true.

"People in their early 20s are saving up for houses and committing to buying a house rather than renting,” he said.

“We are seeing a lot more serious people like that than we have seen in recent years. Whilst I accept that it is very difficult, we are seeing quite a lot of people working hard to save their deposit."

First Time Property Buyer News: Demand for property continued to rise last month say RICS

Tue, 10 Apr 2012 12:27:33 +0100

The latest figures released by the Royal Institute of Chartered Surveyors (RICS) show that demand from property continued to rise in March.

The body’s UK Housing Market Survey (April 9th 2012) found that enquiries from potential first time buyers edged up last month by nine per cent, the biggest increase in more than two years.

RICS says that in the main this was due to people rushing to find a property before the stamp duty holiday for people buying their first home ended on March 24th.

RICS chief economist Simon Rubinsohn, added: “There has been a gentle increase in activity across the market in the early part of the year but it remains to be seen is whether this can continue, given the changes in the Budget.

"London continues to outperform the rest of the UK in terms of prices but, interestingly, the North West did see an increase in activity in March."

HSBC last week revealed that it had loaned more money to first time buyers in March than in any month before.

Social Housing News: Revamped Right to Buy scheme launched

Wed, 04 Apr 2012 13:08:45 +0100

A new updated version of the Right to Buy scheme has been launched by the prime minister and housing minister Grant Shapps this week.

The reinvigorated scheme will allow 2.5 million social housing tenants the opportunity to become first time buyers in their existing home.

They will be incentivised with significant discounts on the property's real market value, depending on how long they have been a tenant there.

The move is the first of its kind since Margaret Thatcher sold off many of the nation's council properties during the 1980s.

In recent years, a lack of discounts to tenants has slowed the number of people looking to own their home. Indeed, last year there were fewer than 3,700 sales. Whereas a decade ago there was a peak of 84,000.

The government intends to make a range of materials available to tenants so that they are aware of their options should they decide that right to buy is the best option for them.

The government have also stated that this is not a fire-sale of affordable properties and for every property sold a new home available at reasonable rent will be constructed.

Prime Minister David Cameron said: "I want many more people to achieve the dream of home ownership. In the 80s, Right to Buy helped millions of people living in council housing achieve their aspiration of owning their own home.

"But over time the discounts were cut, they didn't keep pace with rises in property prices, and this vital rung on the property ladder was all but removed. This government is now putting it back by dramatically increasing the discount rates so that we support the dreams of those council tenants who to want to own the roof over their head."

Under the old scheme, a tenant in London looking to buy a council flat valued at £160,000 would have received a discount of £16,000, but if they have lived there for five years or more they will now be eligible for a discount of up to £75,000.

Social Housing News

First Time Property Buyer News: HSBC loans record amount to first time buyers

Tue, 03 Apr 2012 11:42:00 +0100

HSBC says that it has loaned more money to first time buyers during the first three months of this year than ever before.

The bank claims to have approved mortgages worth £4.9 billion, up nine per cent on last year and the highest quarterly amount in HSBC's long history.

Of this figure, some £1.2 billion was loaned to people taking their first step onto the property ladder. This works out to be the equivalent of £93 million a week or £19 million a day.

HSBC says that more than 10,000 first time buyers came to them during the first three months of this year and it intends to make at least £15 billion more available to UK homeowners before the end of 2012, with £3 billion specifically set aside for first time property buyers.

Peter Dockar, Head of Mortgages at HSBC, said. "We continue to offer UK borrowers some of the most competitive rates around and we remain open for business.

"Earlier this year we committed to make at least £15 billion available and our first three months of the year show that we are already well on our way to achieving this target."

First Time Property Buyer News

Mortgage and Home Loan News: Building society lenders grows considerably

Fri, 30 Mar 2012 09:47:46 +0100

Gross mortgage lending from building societies and other mutuals grew by 28 per cent year-on-year last month, the Building Societies Association has revealed.

The number of new mortgage approvals rose by 31 per cent on February 2011 and 29 per cent on the month previous.

It is believed that the large number of first time buyers seeking to push a purchase through prior to the end of the stamp duty holiday last week as a big factor in the increased figures.

Adrian Coles, director general of the Building Societies Association, said: "Gross lending and new mortgage approvals by mutuals continued to rise year-on-year in February, despite growth across the market as a whole remaining relatively flat.

“The strong financial results released by a number of mutual lenders in recent months show that the sector is well positioned to offer market leading products to its customers and are open for business."

Brian Murphy, head of lending at Mortgage Advice Bureau, added that the figures show that building societies are committed to lending and people who are looking to buy a property can expect to find some good deals.