So finally the lenders are able to offer the Help to Buy
scheme and the rules are made clear. Will it help? Yes has to be the answer,
but it certainly isn't going to overheat the market or create a bubble.
Following on from all of the spin of the last two weeks, the rates announced
today for the 95% mortgages are considerably higher than those on offer for an
80% mortgage with the same lenders. If you think back, what is the problem with
that? My recollection is that a 95% mortgage always did cost more and the
borrowers with a higher deposit always were rewarded with lower rates brought
about by safer lending. From my point of view we will just return to a market
where the first time buyer can now buy but it won't be easy and I think that is
both prudent and correct in terms of a healthy and stable market.
My advice is exactly as it has been over the past months
since Help to Buy was announced. If you have the extra deposit it is better to
use it and have the lower % mortgage at the now more advantageous rate. The
market will pick up with more buyers in a position to buy so don't delay, find
the property you are looking for now as it will never be as cheap again as it
is today.
The press and internet is full of stories of late night
opening in banks to cope with the demand and only yesterday there was talk of a
stampede in London, well we will see what transpires over the next month.
And what about Bradleys, how does this affect our customers.
We have fully Independent Mortgage Advisors who are ready and able to help with
your mortgage regardless of if you want the Help to Buy or not and can
guarantee that they can find the best deal for you. Our 33 offices cover from
Taunton to Penzance so we are sure to be able to find what you are looking for.
Francis Marshall FNAEA
Managing Director
Bradleys Group
No comments:
Post a Comment