We could be entering a period of opportunity for first-time buyers.
Market conditions could be perfect for people looking to buy their first home. Buyers are able to take advantage of cheap mortgage rates and the weakening housing market. Additionally, as a first-time buyer, you can still make use of the government’s Help to Buy ISA scheme, which ends later this year.
For borrowers with a small deposit of say 5 %, which is the case for most first time borrowers, rates are at a historic low.
The average interest rate on a two-year fixed with a 5% deposit has fallen from just below 4% a year ago to 2.59% today (16/05/2019). Check out the best buy table on our website which is updated daily.
Act now to get a Help to Buy ISA
You need to hurry if you want to take advantage of the government’s Help to Buy ISA scheme. This will close to new entrants on 30th November 2019, so don’t delay. The scheme is specifically designed to help first-time buyers to get on the property ladder.
Help to Buy ISAs are a type of Individual Savings Account (ISA) designed to help first-time buyers save up a deposit for their home. The government will add 25% to your savings, up to a maximum of £3,000 on savings of £12,000. The minimum amount you need to save to qualify is £1,600 (which gives you a £400 bonus).
The key features are-
- The government will top up your savings by 25%. So for every £200 you save, the government will contribute £50.
- You can start off with an initial deposit of up to £1,000. This will qualify for the 25% boost from the government.
- Help to Buy ISAs are available to each first-time buyer, not each house. If you are buying a property with your partner, you will be able to get up to £6,000 towards your deposit.
- Your bonus will go straight to the mortgage lender. It does not go to you. You will earn no interest and you only get it if you buy a house.
- Savers can continue to save into a Help to Buy ISA until 1 December 2030.
How Anstee & Co can help you as a first-time buyer.
We are a firm of independent mortgage brokers. This means that the advice we offer is unbiased. We look at all the mortgage options from the “whole of market”. Unlike some, we do not work from a limited panel.
We feel that it is important that you are aware of exactly what you can afford to borrow. While interest rates are historically low at the moment you should be aware of the effect any rate increases may have on your monthly repayments. Our mortgage adviser will provide you with a personal illustration.
If you are a first-time buyer, why not arrange an appointment today. You can arrange a meeting at a convenient time and location. This includes meetings in the early evening and at weekends.
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Birmingham, Snow Hill Queensway
- London, Pall Mall
Additionally, our mortgage advisers live and make use of meeting rooms in-
- Bedford, Bedfordshire
- Droitwich, Worcestershire
- Market Harborough, Leicestershire
- Wellingborough, Northampton and Towcester in Northamptonshire.