Move On Up ….With Griffiths Ings
By admin
Issued on behalf of Griffiths Ings
How nice it is to start our column with some good news. Hopefully, last week’s Interest Rate cut should help more first time buyers to get on the property ladder. First time buyers are the key to a vibrant property market as without them second time buyers themselves cannot move. The level of first time buyers is currently at it’s lowest level for more than 20 years and as an industry we all have a duty to help provide the solutions to assist them onto the property ladder. There are basically five ways in which first time buyers can get onto the property market. Firstly, there are the lucky few who are able to provide a deposit or able to get a 100% mortgage to cover the full purchase price of the property. Certain lenders are being much more creative and adventurous in the way they calculate how much they can lend. In particular, people working within professions can, with certain lenders, borrow up to 110% of the purchase price. All the financial advisors will have details of these lenders. The further option is for first time buyers to get help from their parents. Again, the switched on lenders are being more courageous in looking at solutions for first timers involving their parents either as guarantors or going on the legal title with their children. Another option is for groups of up to four first timers to get together and buy a property using a Deed of Trust. We have been doing this for several years using our “Buy With a Buddy” scheme. Lenders are currently looking favourably on multiple mortgage applications for groups of friends buying together. Shared ownership is also becoming more important in the current economic climate, with a clear commitment from the Welsh Assembly to help Housing Associations provide greater solutions to enable first time buyers to get a foot on the ladder. Finally, we are seeing the New Build developments becoming ever more generous on the incentives they offer. Whichever category you fit into the future for first time buyers is nowhere near as bleak as the property press would lead people to believe over the past year.
