Archive for October, 2011
First Time Buyers offered better rates
HSBC joins banks and build societies that are providing first time buyers with a higher mortgage so little deposits are required.
First time buyers are being targeted by banks and building societies as mortgage percentages available are increasing allowing first time buyers the chance to get onto the property ladder with a smaller deposit.
Some banks have launched a fee-free mortgage with the maximum loan to value on offer for 90% including a lifetime tracker. Banks have put aside £250m for the lending to first time buyers up until the end of the year.
According to lenders the mortgage market is showing signs of improving
52,000 home loans were advanced for house purchases this is 7% higher than in July says Council of Mortgage Lenders. Although this still doesn’t suggest a massive housing boom this year.
Remortgaging has also shown a rise. CML however have produced a survey from surveyors and they have revealed that the UK and European economies are knocking the confidence of the housing market. Fewer homeowners are putting their property on the market at the moment due to being so fragile.
Compared to August last year the market is still 1.3% lower according to the house surveys taken in August.
Rent becoming too high for families to afford
Working families over England were the people that were finding the rental market harder to afford due to the increase. Rents being charged by private landlords in this sector were more than a third of most people’s wages, sending the affordability to the maximum.
A survey showed that 38% of families in rental accommodation have cut down on their food shopping in order to pay the rent. Renting has always been considered as the cheaper option to home ownership, but not now the credit crunch and high house prices have caused potential home buyers to stay as tenant and also increased their rent.