Buying your first house in today’s property climate is no easy task, but it is certainly a rewarding one. Millennials don’t have it all on a plate, and it takes a lot of determination, not to mention giving up those sacred avocado toasts ;). Whilst you might see buying your first home as a long way off, it’s never too early to begin preparing. You can look into different schemes which might help you to get your foot on the ladder earlier than expected, and it’s good to know exactly what buying a house entails. Know where you stand, and if the dream of buying a house is actually closer than you may think!
This week has seen changes to the UK budget that could make pathways to home ownership for 1st time buyers better than we’ve seen for a long time. As always we were given a few tit-bits of information prior to the budget being officially released by Chancellor Phillip Hammond and these leaks made us hopeful that this time around the Government was going to aim to tackle the ongoing housing issues that have blighted this country for years.
The younger generation have in recent decades become dismayed that the prospect of being able to get onto the property ladder has become an unachievable dream for them. This year, massive changes to the key policy on Stamp Duty for First Time Buyers, could mean that home ownership becomes a very real possibility for many.
Getting a mortgage is one of the biggest and scariest commitments you’ll ever make in your life. Once you’ve taken the plunge, it’s true you could be liable for an awful lot of money, but the benefits of having a mortgage can far outweigh the risks.
It can be tempting to stick to renting, there are definitely advantages involved. Relying on a landlord when things go wrong is a safety net for many, but it’s not always as easy as that. When you own your home, you’re the master of the ship. Nobody dictates what you can and can’t do with the place you call home. You don’t have to follow the rules set out in your tenancy. You can do things on your own terms.
You are entering into a big agreement with your mortgage provider, but looking around for the best rates often means you finish up paying for less for your monthly mortgage repayment than you would for your monthly rent. Financial freedom often comes from having a lower repayment and not being so restricted by your finances before payday.
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.
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.