subject: First Time Buyers Can Benefit From Incentives [print this page] In the last few years the economic climate has suffered one set back after the other, we have experienced a double dip recession and the collapse of banks and other lending institutions. Some banks have been subsidised by the government and saved, buy-outs have been also taking place.
Due to the state of the Worlds economy borrowing money in order to purchase a home has been increasingly difficult. Lenders across the board have clamped down and credit limits decreased for many credit cards. Individuals with less than perfect credit ratings have found it impossible to borrow money.
Before the bad luck began house prices had been at an all-time high and it was very easy to borrow money and mortgages were being given to the majority of people. This meant that people were borrowing beyond their means in some cases. House prices were pushed up and anyone who had taken a mortgage out at this time will be stuck where they are for the time being rather than to sell and make a loss.
The big issue for those who do not already own their own home is that it is very difficult to take the first steps onto the property ladder. With mortgages being so hard to obtain and the initial deposit required being out of reach at 20% in some cases this left a lot of first time buyers stuck with parents or in rented accommodation.
At the beginning of the recession one of the first sectors to be hit was the construction industry new housing estates that were due to be built were put on hold. Luckily we are starting to see an improvement and new homes are being built all over Britain.
We are starting to see an improvement in the availability of mortgages and lenders are beginning to gain confidence the government has insisted that lending is made easier in a bid to guide the country out of recession. We have recently seen the return of the 5% deposit this will make it possible for many people to be able to buy their own home. In some cases it may be possible to secure a 100% mortgage.
The incentives are brilliant at this time for example the government have introduced a scheme that enables you to borrow 80% of the new homes value and allows you to buy the remaining 20% at a later date.
There has never been a better time to consider purchasing a new home in many cases new housing estates are a very attractive prospect.
by: Jeremy Mond
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