Even in today’s challenging economic climate - and contrary to public perception - there is still finance available to allow potential home owners to realise their dreams of home ownership.
There is also a range of Government-backed and developer-led shared equity and shared ownership schemes in existence that mean more people have the option of getting their dream home.
While it is generally agreed that a return by the banks to normal levels of mortgage lending is critical to sustain any upturn in the housing market, there are still mortgages available for those who can demonstrate they are able to meet repayments.
And although larger deposits are being asked by most lenders, some banks are offering innovative solutions, such as allowing family members’ savings to offset a mortgage.
Government and developer initiatives such as HomeBuy Direct - whereby the Government and the housebuilder each initially retain 15% ownership of the home, enabling the individual to buy at 70 per cent of the property’s value - are also helping many onto the property ladder.
And with a recent NHMB YouGov survey* showing that 9 out of 10 people believe home ownership is a great investment in their future, many builders are responding and are now operating their own schemes, fully regulated and approved, in which they retain a share in the property, at a low interest rate, in order to ease the start-out burden on the purchaser.
Sue Anderson of the Council of Mortgage Lenders says today: “Despite rumours to the contrary, there are mortgages available and a variety of innovative deals out there to help you buy your new home. Mortgage finance is gradually becoming more widely available again. There are various ways to find out what deals are on offer – you can look online, look at individual lenders’ websites or branches, or talk to a broker. It’s important to make sure your borrowing is affordable for you both now and in the future, so that you can buy your new home with confidence.”
Lenders’ websites and branches contain comprehensive information about the mortgages they are offering and people can make an appointment to speak to a staff advisor. Alternatively, good mortgage brokers will be able to assess an individual’s situation and attitude to risk and give advice on the range of products on offer.
*Source: Figure based on NHMB YouGov survey undertaken in February 2009, that showed that 88% of people polled believed buying a new home was a sensible investment for the future.
New Homes Week 12-20th September 2009
See Also: Property News (6680), New Homes Week (7), HomeBuy Direct (62)
Date Published: 11 September 2009
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