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Article in the Herald Express Property Guide - 13/12/2012

Article in the Herald Express Property Guide - 13/12/2012

Traditionally ‘First time’ buyers have been the beginning of the property chain, but in recent years, especially in Torbay, they have been eclipsed by investors and second home buyers, in fact, not so long ago, it was looking as if they could be in danger of becoming extinct!

 Thankfully, helped by the ‘Stamp duty holiday’ for first time buyers which ended earlier in the year, and the Banks, sparked by the ‘Funding for Lending’ scheme launched in August that allowed lenders to borrow at rock bottom prices, the situation may be easing a little.

 A recent article in the Telegraph even suggested that cut price mortgage deals may start a price war. 

Unfortunately the best deal launched by HSBC requires a 40% deposit, which is not possible for most people, but experts predict that the price war may filter through to the first time buyer market.

‘There is a price war among mortgage lenders – the first since the credit crisis’, said Ray Boulger of John Charcoal mortgage brokers. ‘Lenders are genuinely looking for business’.

 Encouragingly rates on popular home loans have fallen by a third since the summer knocking £125 off  the monthly interest cost of a £150,000 mortgage.

 The sad thing is that many young people are opting to move into rented accommodation which is no panacea. They may end up paying a premium rent and even encounter problems with unhelpful landlords. The enormity of having to raise large deposits seem to many to be an impossible goal.

 My message is this : Save, save, save! When something seems unobtainable is it easy to give up. When, hopefully, banks start to  offer more low deposit deals you need to be prepared or you may miss out.

 Hopefully, the ‘price war’ will filter through and move things along locally.

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