Think you’re not able to get your foot on that property ladder? Think again!

In the current climate, many people see home ownership as an impossible dream. Trying to get a foot on the property ladder can be a real struggle. Many people are leaving university with a huge debt behind them and starting low paid, entry level first jobs. Being able to save enough money for a deposit is a common problem.

But the government has introduced a number of different Help to Buy schemes, all aimed at those struggling to buy their first home.

We’ve explained them all for you here, to try and help you navigate the maze.

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Posted in First Time Buyers

Major lender to pay first-buyers’ stamp duty

First-time buyers spend years struggling to save enough for a house deposit and often the stamp duty tax is a step too far. A new mortgage giving prospective home buyers a helping hand has just been launched by a major lender and as a result, another barrier to owning your first home has been lifted.

This new mortgage deal will be welcome news to first-time buyers who have found it difficult to get their foot on the property ladder due to soaring property prices and the high cost of stamp duty.

An exciting fee-free cashback offer, Barclays has launched the Homebuyer Cashback Mortgage which helps first-time buyers to recover the cost of stamp duty on their new purchase. Moreover, buyers will also have the flexibility to spend the cashback in any way they choose as the payment is made direct to their bank.

Borrowers will need to save a 20% deposit to qualify for the five year fixed rate deal with a rate of 2.69%. Full stamp duty cost will be covered on properties up to £250,000 and properties above this value, up to £500,000, will receive £2500 as a contribution to stamp duty costs.

Other banks have cashback offers but currently none are paying as much as Barclays. However, there are alternative deals on the market with lower cashback offers and lower rates so it’s important that all options and costs are considered.

Do your research or speak to your mortgage advisor to ensure you get the most suitable, cost effective option for you.

Posted in First Time Buyers, Mortgages

Get Ready to Beat the Rate Hikes

Last month Mark Carney warned that a base rate increase is likely towards the end of this year or very early in 2016. Although it’s expected to be a minor increase, it’s the general trend that home owners need to prepare for – it may be worth taking steps soon to get ahead of the game.

With lenders also expected to up interest rates on mortgages, making monthly mortgage payments more expensive, it makes sense to start looking for new fixed-rate deals before banks and building societies take action.

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Posted in First Time Buyers, Mortgages, Next Time Buyers, Remortgaging

Landlords Can Now Cover Rental Shortfall With Personal Income

Back in February our blog included a story about Barclays’ plans to let landlords cover rental shortfalls with personal income. We can now update you on recent developments: the bank has just scrapped its old B2L mortgages to make way for this new approach.

Now, Barclays puts landlords through an affordability assessment to find out whether rental will be met. Where there’s a shortfall, landlords can still potentially get a mortgage if they have enough disposable income to plug the gap. If applications were not completed by July 24th, landlords need to re-submit under this new assessment criteria.

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Posted in Buy-to-let, First Time Buyers, Mortgages, News, Next Time Buyers, Remortgaging

Experts React to Landlord Tax Relief Cuts

As you’ve probably already heard, the government has clamped down on tax relief on mortgage interest payments for landlords in the latest budget. At the moment wealthy landlords can claim relief of up to 45%, but from April 2017, the limit will gradually come down to 20%. Predictably, it’s caused some strong reactions from experts in property and finance.

If you’re a B2L landlord – or considering a move into property investment – it’s worth reading our summary of opinions and figures we’ve gathered together from recent reports:

  • The National Landlords Association claims the change will shift the burden to tenants through an increase in rents.
  • Millionaire landlord, Fergus Wilson, offers his thoughts on how this will not solve the housing crisis.
  • New PwC research shows that the impact of tax relief reduction will be compounded by the eventual rise in the Bank of England base rate.
  • Deloitte has also pitched in, telling The Telegraph:

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Posted in Buy-to-let, First Time Buyers, Mortgages, News