When it comes to the property market, you need to keep an eye on all sides. If you are looking to sell your home, it is important that there are buyers in the market. If you are looking to buy property, there need to be vendors who are looking to sell their home.
It is perfectly natural that you focus on your own needs, but you should take some time to make sure that others have the opportunity to act in the market. The news that Lloyds is bringing back a 100% mortgage for some first-time buyers is positive news for these buyers but it could also be of benefit to vendors.
Buyers and vendors can benefit at the same time
After all, if there are more people looking to buy homes, vendors can be confident about the demand that will be present in the market. If you are looking to sell your home in Stockport, you want to see as many willing buyers as possible. Of course, if you are looking to sell your home in Stockport, you want to call on the services of a skilled and experienced estate agent!
Given that Lloyds is the largest lender in the country, their ‘Lend A Hand’ scheme is going to be of interest to many people. First-time buyers will be able to borrow up to £500,000 without having to place a deposit. When you consider the majority of lenders are looking for a minimum of a 5% deposit, this is positive news for many buyers.
There is a similar deal on offer from Barclays, who have a “family springboard” deal, but Lloyds is confident that their deal will undercut the Barclays deal.
There are conditions attached to the first-time buyer mortgage
If you are thinking that this all sounds too good to be true, there are conditions attached to the mortgage. A family member has to place 10% of the property value into a Lloyds savings account. The interest rate for this savings account will be 2.5%.
Vim Maru is the Group Director of Lloyds Banking Group and he said; “We are committed to lending £30bn to first-time buyers by 2020 as part of our pledge to help people and communities across Britain prosper – and ‘Lend a Hand’ is one of the ways we will do this. At the heart of this market-leading product is helping to address the biggest challenge first-time buyers face getting on to the property ladder while rewarding loyal customers in a low-rate environment.”
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