Despite house prices having increased 554% in the last 30 years and living in a time when it appears to be harder than ever to get that first step on the property ladder, it may come as a surprise that the British population are still managing to find a way.
First time buyers significantly contributed to the mortgage market in August with lending to the group reaching its highest level since 2017, according to data from industry group UK finance. There were a substantial 35,500 new first-time buyer mortgages completed in the month – an impressive 2% increase year on year.
The increase in first time buyers could partly be attributed to the governments Help to Buy schemes. In brief the schemes offer help for first time buyers ranging from the Help to Buy ISA, where the government will top up your savings by 25% to a maximum of £200 a month, to the Help to Buy equity loan scheme, where the government lends up to 20% of the cost of your newly built home in the form of a loan, except it comes without loan fees for the first five years. But of course, additional criteria and rules apply.
There are also other ways younger people can join the growing first-time buyer market with the help of their parents and family.
Joint borrower, sole proprietor mortgages are one way in which you could increase your child’s affordability, adding your name to the mortgage will essentially increase income and improve their chances of attaining the level of borrowing they were hoping for. These mortgages were aimed at bridging the gaps between salaries and housing prices and geared towards helping your loved ones get the home of their dreams.
You could also use your property or savings as security for their mortgage if they’re struggling to raise a deposit. So, whether your loved ones can afford it alone or whether they need your help, first time buyers in Britain are on the up.
If your loved ones are looking to join the 35,500 other first time buyers and get their first step on the property ladder, get them to contact your adviser today.