| Lower Interest Rates for First Time Buyers and New Homeowners |
| Articles - Mortgage |
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New homeowners and first time buyers are welcoming the news that the Bank of England has revealed figures that show the lowest interest rates in 6 years. Northern Rock, The Chelsea Building Society and The Co-Operative Bank have all revealed competitive deals recently, which will be a relief for the hundreds of people in the UK wanting to get a foothold on the property ladder.
New homeowners and first time buyers are welcoming the news that the Bank of England has revealed figures that show the lowest interest rates in 6 years. Northern Rock, The Chelsea Building Society and The Co-Operative Bank have all revealed competitive deals recently, which will be a relief for the hundreds of people in the UK wanting to get a foothold on the property ladder. In February 2010, on average a 2 year fixed-rate deal fell to 3.88%, the lowest rate since summer 2003. In conjunction with this fall there was also a decrease in the average cost of a five year fixed rate mortgage, falling to 5.49%, a change of 0.07% on the previous month. Due to lenders competing to attract good-quality borrowers, interest rates have fallen. This should encourage existing customers to remortgage their property. New UK Homeowners and First Time Buyers Part of the Nationwide Building Society group has introduced an innovative new range of guarantor home loans, The Mortgage Works. The idea behind this scheme is to allow parents or relatives to be financial responsible for a proportion of a borrower's mortgage, therefore removing the risk of backing the entire loan. The deal is aimed at young professionals trying to gain a foot hold in the market and start to climb the property ladder, it requires the applicant to be able to afford at least 70% of the loan repayments, while the guarantor must be able to make up the remaining 30%. There is also a 10% cushion. Schemes like this release some stress on first time buyers and is a positive step for the housing market. A different approach has been taken by Halifax, with their "Lend a Hand" deal, giving first time buyers a stronger chance of getting their foot in the door. It means that a buyer can now borrow up to 95% of the value of the property. However, this must be backed by a parent or relatives savings. The demand for mortgages in recent times has meant that deals like this are becoming a more common reality for banks and building societies, providing a different kind of service for borrowers. The schemes, like the ones above, have allowed first time buyers a choice in how they could obtain a mortgage for their new property A new homeowner or first time buyer may choose a shared equity scheme that can help when buying an apartment or house. The Hub, a property development in Manchester provides a shared equity scheme, where you can buy a studio, 1 bed, 2 bed or 3 bed apartments. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more about Manchester apartments for sale, then contact Sinead Jones at The Hub Manchester for more information. |