Improved Mortgage Lending Assists First Time Buyers
Published by Kristen Boho for Orbit HomeBuy Agents in Housing
Mortgages with smaller deposits mean the property ladder IS still accessible for first time buyers
Despite doom and gloom in the financial markets and many reports highlighting little or no hope of first time buyers ever becoming homeowners, Orbit HomeBuy agents in partnership with leading property developers are bucking the falling house sales trend.
A report issued by the Halifax earlier this year indicated that the UK may become a nation of renters within a generation due to high house prices, a perception that banks are not lending and a fear of the application process.
Furthermore a flat property market and the risk of a double dip recession may once again create a difficult lending environment for aspirational homeowners who have little or no confidence in the present housing market.
Orbit HomeBuy Agents are delighted to be helping first time buyers who are now able to buy a home with a deposit of as little as 4% of the purchase price, helping many families buy their first home with mortgage repayments they can afford
This follows the successful launch of FirstBuy onto the property market.
FirstBuy, launched earlier this year is a new equity loan product designed to help First Time Buyers into affordable home ownership by purchasing a brand new property from a house builder/developer.
An equity loan of up to 20% of the home's full market value will be offered to eligible applicants and is co-funded by the Government, via Orbit HomeBuy Agency and the developer.
Karen Coleman, Head of Orbit HomeBuy agents commented:
‘It is widely believed that first time buyers in particular cannot afford a home mainly due to a requirement for large deposits, and a perceived reluctance of lenders in the current depressed financial market.’
Our extensive experience shows that this is not always the case. Banks are lending and deposits can be affordable, particularly with the help of schemes like FirstBuy and within Orbit our aim is to make sure that purchases are affordable and sustainable .
We understand that first time buyers can find the prospect of buying a home daunting, indeed many have ruled themselves out of ever being able to purchase but we are there to help them get that all important first foot on the property ladder within their budget and at a rate they can afford’
‘Reports have highlighted that 77% of people surveyed expressed a real desire to own their own home, and we feel that despite a weak economy, now is the time for prospective house purchasers to take a realistic look at the options available’