24 April 2010

Mortgages with a barcode?

Homeowners rate buying a house more stressful than having a child. House buying tops the table of most ‘stressful life experiences’ with one in four (24%) homeowners finding it the most demanding and worrying thing they have done, according to research from Unbiased.co.uk

It is still First Time Buyers who are particularly hard hit needing a substantial deposit merely to get on the housing ladder and a significantly larger deposit to access the best rates.

According to creditaction, the typical first time buyer deposit in January was 25% (£38,348), with the average first time buyer loan being £115,044 and at an average of 3.08 times their income.

The reality continues with a YouGov survey revealing that 86% of 18-30 years olds could not currently afford to buy a home if they wanted to, despite recent falls in house prices. A massive 83% of 18-30 year olds also thought buying a new home was now more a pipe dream than a reality.

It shouldn’t be so. We have witnessed the suspension of Stamp Duty below £250k, lower property prices, more lenders looking to assist First Time Buyers with higher loan to value mortgages and other options, including Guarantor mortgages and Shared Ownership schemes. You really need to research and explore all the options available to make that important first step on to the property ladder a reality.

Meanwhile, house prices increased by 1.1% in March, partly offsetting February’s 1.6%fall, according to the latest Halifax House Price Index. This rise was the eighth rise in the past nine months. The average price is now £168,521, 9.1% above last Aprils low point.

House price confidence appears to be on the increase; if only the mortgage financing available could support such levels of optimism.

Let’s not be despondent though at the continuing tough market. Tesco Bank has confirmed plans to launch a mortgage range by the end of 2010 as it looks to build the brand into a fully-fledged retail bank. So whilst picking up your cornflakes, butter, bananas and sausages, you can also throw a mortgage in to your basket. I wonder if it will have a barcode so you can scan it in at the self-service check out?

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