This year has been a pivotal turning point for many...
Low rates lead to a surge in first time buyer activity
The number of first time buyers is now at its highest level in ten years thanks to affordable mortgage rates.
A combination of low rates, increasing employment levels and new government schemes such as Help to Buy, has led to this boost in first time buyer numbers with a total of 335,750 people buying their first home in 2016 – an increase of 7% when compared to figures from 2015. Research from Halifax saw that almost half of all properties bought in the UK last year with a mortgage were those buying their first property.
This is the highest level of first time buyers since the economic downturn in 2007. Since then, the government has revised the stamp duty rates, meaning that since 2014, a large majority of first time buyers now pay significantly less land tax (if any) compared to when the “slab” system was in practice three years ago. The Help to Buy scheme has also greatly improved the number of first time buyers, with the introduction of the government funded ISA in 2015 along with the 5% deposit initiative on newly built homes. In 2016, the average age of a first time buyer in the UK was 30.
Another incentive for first time buyers in recent times has been a result of lower mortgage costs, making getting on to the property ladder more accessible for the average new buyer. Borrowers have been able to take advantage of record low payments, with some lenders offering just 2.5% for a three year fixed rate mortgage.
At Expedite Finance, we’re here to help you make that first step onto the property ladder. Our team are experts in their field and can talk you through the entire process from start to finish. They will also find you the best mortgage deal on the market to suit your needs, so you don’t have the hassle of speaking to multiple lenders during your search. To find out more about our services, whether you’re buying your first home or you’re considering other financial options with your property, call us on 0800 2012 100.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Source: http://www.thetimes.co.uk/article/cheap-borrowing-encourages-a-boom-in-first-time-buyers-j65l7cjd8 – On clicking this link you will leave the regulated site of Expedite Financial Services Ltd. Neither Expedite Financial Services Ltd, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.
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