Guest Blogger - Danny Bailey

What does the new Budget mean for the mortgage market?

The property ladder has become an unattainable aspiration in recent years for those trying to build up savings to afford the demand for large deposits; however, new plans within the budget are offering an avenue into home ownership making it a real possibility for many.

So what exactly does the new budget propose?

The budget outlines a multi-billion pound scheme which seeks to improve first-time home ownership prospects through low-deposit mortgages, and to encourage an increase in new housing. This new initiative has been termed Help to Buy.

Help to Buy is made up of two separate schemes; the first an equity loan and the second a mortgage guarantee.

Equity Loan

The equity loan scheme, which will be implemented on the 1^st of April 2013, allows both first-time buyers and existing homeowners to purchase a new build property worth up to £600,000. The first five years of the 20% equity loan are interest free.

To acquire this loan you will need:

·         A deposit of at least 5%

·         The remaining 75% borrowed from a mortgage lender

Research has estimated that these equity loans could potentially support 75,000 sales of new homes over the course of the next three years (Savills research).

Mortgage Guarantee

This scheme doesn't begin until January 2014. Like the equity loan, the mortgage guarantee scheme is available to existing homeowners and first-time buyers who with this can purchase a home worth up to £600,000 (both new build properties and existing homes).

The plan with this particular scheme is to create an incentive for lenders to provide more mortgages with low deposits by giving them a guarantee of a percentage of your loan.

It is estimated that the mortgage guarantee scheme could enable around “550,000 extra house sales over the next three years if it translates in to £130 billion of mortgage lending” (Savills research).

Would you like to find out if you can become one of these many new home owners? I can provide you with specialist financial advice on the best mortgage option for you.

Daniel Bailey

www.middletonfinance.co.uk

info@middletonfinance.co.uk

“Let Spencers change the future of Lettings”

“Let Spencers change the future of lettings”

Having recently joined Spencers Estate Agents Gemma Hynes  says the most appropriate two words for Spencers are “professional” and “innovative” and says that this especially relates to the eagerly anticipated opening of Spencers Rental department, which launches in April in our prestigious newly extended first floor offices at 463-469 Ecclesall Road.

Having worked in the highly demanding Leeds market for over eight years for one of the country’s most successful award winning Independent Estate Agents, Gemma knows plenty about the key to success in the property industry and remarked that Spencers “have it in abundance”. This is why when Gemma relocated back to her home town she knew that there was “only one estate agent for me”. 

Gemma says “the Directors and the team here have the enthusiasm and passion which sets them apart from the rest and will make Sheffield take note of how letting should be done. The plans for the future are not only exciting but aspirational and I am very honoured to be a part of this. We cannot wait for you all to see.”

For more details call Gemma or Nicola on 0114 2683682 or email them to pop in and see the fabulous show flat at their offices Nicola@SpencersEtateAgents.co.uk or Gemma@SpencersEstateAgents.co.uk