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Article > Do First-Time Buyers Ever Think Home Ownership Is Possible?


Article kindly provided by

www.ascotmortgages.co.uk


The Government’s ‘Help to Buy Scheme,’ which brought forward plans to add to purchaser’s deposits from January 2014 to October 2013, was met with much interest. Eager first-time buyers, who felt that they might be able to get on the housing ladder, were quick to enquire. You can find out if you are eligible for Help to Buy here.

One major mortgage lender reported that, since the scheme’s announcement on the 13th October, mortgage enquiries had almost doubled. The home-buying hopes of many would-be first-time buyers had been dashed from around 2008, when mortgages became tougher to get, and the house market subsequently plummeted. Recent reports, however, suggest that house sales are on the increase, with some potential buyers reporting a huge rise in the properties that they are aiming for... but do first-time buyers feel that they are now in a position to buy, following this announcement, or has the hangover of the economic recession blighted future aspirations of home ownership?

A recent report, published after the Government’s announcement, suggested that 80 percent of adults aged under 35 think that it is ‘unrealistic’ to expect to own a home, and so instead spend their money on ‘treats.’ However 7 in 10 thought they would be in a position to own their own home in 5 to 10 years.

The perception of home ownership often differed from the reality. 50 percent of the people asked, said that they would expect to own their own home by now. The perceptions of the people asked was that 33 years old was the average age of the first time buyer, after 6 years of saving. These are the people who make up ‘generation rent,’ the group of people who have moved out of their parents’ home, but use their salary to rent, and therefore cannot save for a deposit; the exact people that the Government’s scheme is designed to help.

Despite all the publicity around the Help to Buy Scheme, and other shared ownership schemes, 70 percent of the people asked did not think that they understood fully the range of mortgage options available to them.

Kevin Gibson of Ascot Mortgages “There is still a lot of confusion around the Help to Buy Scheme with many potential first time buyers wrongly believing they do not qualify, or mis-understanding the criteria. The Help to Buy Scheme is designed to help a very wide range of people, and therefore most first time buyers will be eligible for the scheme.”

So, what is the outlook for first-time buyers in 2014? Probably that they are making tentative steps towards increased home ownership, whilst taking stock of the reality of the situation, and the fact that renting is becoming more normal. For potential buyers, then, the best thing to do is get advise off an independent ‘whole of market’ mortgage adviser such as Ascot Mortgages.


 

 

Ascot Mortgages are highly regarded and experienced UK mortgage brokers, we provide the very best impartial mortgage advice and sources the best mortgage deals from the “whole of market”.


Ascot Mortgages can assist you in finding the best mortgage deals for new purchases and remortgages for residential properties and buy to let mortgages for investment purposes. We are also a UK leading expert mortgage broker in securing right to buy mortgages for customers taking up the governments new discount incentive for buying your council house.

 

 
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