Lending to 1st time property buyers has increased by 11% in 2012, as the numbers of loans extended to borrowers with small deposits rose.
Purchase approvals across the market rose by 3%, and new buyer numbers have climbed to their highest levels in 5 years.
Experts predict that the full effect of the Bank of England’s Funding for Lending scheme (value £80 billion) and a relaxation of bank capital adequacy rules will bear fruit.
This is all good news for our 1st time buying clientele, who are based mainly in London. Our specialist unit of lawyers dealing with 1st time buyers, Layna Thompson and Janak Bakrania have noticed that these clients are now of an older age group (average age now 35yrs old) and that as many as 2/3rds have financial assistance from friends or family.
In response to the fact that the average 1st time buyer in London needs 20% of the purchase price as a deposit and are waiting 10 years before they can buy, mortgage providers are engaging in a price war.
Barclays have introduced a new "Family Springboard mortgage”, which in real terms will give a loan to value (LTV) of 95% at 4.69%.
Essentially, the mortgage is fixed for three years and the family tie up 10% of the purchase price into a connected savings account until the end of the rate fix. Thus the true value of the deposit is 15%.
Our specialist, experienced conveyancing solicitors, based in London, know only too well the pressures that first time buyers are subject to, especially when relying on family assistance. We provide a reasonably priced, fficient, supportive service, gently guiding the 1st time buyer through the biggest financial outlay of their lives.
