It is understandable that first-time buyers are keen to purchase a home as soon as they can, but the size of deposit required can be a barrier. This is frustrating but the larger deposit a buyer can offer, the more likely they will be to receive a mortgage, and the more attractive this mortgage will be. Therefore, it is vital that you know where and how you can reduce the time it takes to snap up a property.
Also, if you are a property owner looking to sell, the ease with which buyers can obtain a mortgage impacts on you, so make sure that you stay fully informed of how buyers are moving on to the property ladder.
Could you save your deposit in just 7 months?
A study undertaken by Compare My Move suggests that there are some parts of the UK where first-time buyers aged between 22 and 29 years old can secure their deposit within seven months! This is a very short time-frame, and it does mean that you would be buying property in Burnley in Lancashire, which isn’t everyone’s ideal home, but it does show that there are locations to consider if you want to buy quickly.
Unsurprisingly, the process is much quicker in the north of England, and the Help To Buy scheme has a big role to play in helping buyers get on to the property ladder. With a 20% loan from the Government’s Help To Buy scheme and a 5% deposit from the buyer, the Help To Buy Equity Loan makes a massive difference for many people looking to get on to the ladder. Of the 50 UK locations reviewed, the survey found that 14 locations gave buyers the chance to step onto the property ladder within a year if they saved at a standard rate.
To get more information on Compare My Move, you can visit their website for more information:
https://www.comparemymove.com/house-removals/help-to-buy-mapped
Would you rather buy than pay rent money?
Dave Sayce is the co-founder and director of Compare My Move and he released a statement, saying; “Our research shines a light on the struggle man young renters face in getting together a deposit for their first home. In many cities, it’s a race against rent to save a deposit as a prospective first-time buyer. In cities and towns where rent greatly outstrips the national average, it can take more than a decade for renters in their 20s to save up a 15% deposit.”
Even though people in many parts of the country will doubt the extent of the impact the Autumn 2018 Budget measures will have on their property market, there is hope that the Help To Buy extension will help people buy property, which in turn, can help people sell too. Sayce also said; “It’s clear from our research that the Help to Buy scheme acts as an important catalyst for getting renters on the property ladder, and its extension to 2023 in the recent budget will act as a lifeline to generation rent.”
As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html