The plans outlined in this week's Budget to boot up the property market will be a major help for homebuyers, says Robin Davie, Property Manager at Blair Cadell.
Further measures to kick start the mortgage and housing market through the 'Help to Buy' scheme are welcome at a time when so many potential homebuyers are unable to get a foot on the housing ladder, or are trapped by not having much equity in their homes.
Not only will the scheme help first-time buyers, but it will help existing homeowners too. There are two elements to the scheme: the first offers shared-equity loans to anyone looking to buy a new build property. This is an extension of the existing First Buy Scheme which is only available to first-time buyers.
The second element is the proposal to introduce a new mortgage guarantee scheme which will hopefully encourage more lenders to offer mortgages to those with smaller deposits.
While mortgage rates have fallen significantly in recent months, the best deals are still only available to those with significant deposits - in many cases 40% or more. Under the mortgage guarantee scheme lenders can purchase a government guarantee that will protect them in the event of a borrower falling behind with their mortgage repayments and their home being repossessed. It is hoped this will make it easier for those with small deposits to get a mortgage.
While there is still more detail yet to come out, the housing
market in many parts of the country is pretty much stagnant so
anything to help get it moving again is good news - particularly to
those who can't sell their homes.
For further information contact:
Robin Davie, Property Manager, Blair Cadell Solicitors & Estate Agents 0131 337 1800 firstname.lastname@example.org