New figures show demand for homeownership has soared during the lockdown, with nearly 80% of private renters now saving for a deposit. Today’s launch further strengthens government commitment to supporting the housing sector ..
First announced in the Budget, the scheme will help first time buyers or current homeowners secure a mortgage with just a 5% deposit to buy a house of up to £600,000 – providing an affordable route to homeownership for aspiring homeowners.
Personal finance expert from Raisin UK, Kevin Mountford has said:
“For many Brits their home is their castle and for too long, too many have been priced out the market; the more that can experience that feeling of putting the key in the lock for the first time the better. First-time buyers in particular, for whom this measure will be a game changer, are the roots of the market and nurturing them will only benefit the rest of the housing tree. With affordability remaining the key issue, homeownership has failed to keep pace with the maturing and increasingly accessible private rental sector and by including current homeowners and older stock, this intervention has the potential to be a real success. However, the affordability issue for renters goes much deeper than the deposit too. Mortgage lenders calculate their lending by multiplying household income – and with the average house price in England coming in at just under £270,000, it means that you’ll need quite a hefty household income to get a 95% mortgage to afford to buy it.”
Top tips for prospective buyers
Buffer, buffer and buffer some more – a good rule of thumb is to allow yourself 10% more on quoted fees and budgets to ensure that you’re able to cover any unexpected costs in the long run. There are many steps to buying a new home, so these costs can come in the form of legal fees, surveyor costs and stamp duty
Make your money go further – it is no secret that getting a better rate on your savings will help your money go further, however many of us don’t. Switching now could mean £00’s more in free earned interest, helping to increase your buffer fund without stretching your finances any further