First Time Buyers

TestimonialsEveryone at Parkgate were absolutely brilliant, Kevin, who I dealt with was brilliant very concise and clear about what he needed then he went away for a few days worked his magic and got me a great product. No pushy advice or trying to sell a certain product, just the facts plain and simple and advice when I asked a question. I now recommend him to everyone I know. Will be using again.

Help to BuyEquity loans taken out under the Help to Buy scheme since its inception have reached a total value of £600m, government figures have revealed.

Since the scheme launched in April 2013 14,823 equity loans have completed to the end of January, 89% of which were for first-time buyers.

Leeds topped the table as the council which completed the most purchases with 268.

The Help to Buy equity loan scheme can be used to purchase a new build property up to the value of £600,000 with a 20% equity loan up to a maximum of £120,000.

The government has set aside a pot of £3.5bn to service the equity loan scheme.

The availability of a government loan to purchase a new build home helped to drive up house building activity last year.

Planning permissions granted in 2013 reached their highest level since 2007 climbing to 174,471, a report from the House Builders Federation showed.

The report revealed the scheme was delivering around 2500 reservations a month.

But despite the upward trend, the 2013 total figure is still short of meeting the country’s annual housing demands.

The Office of National Statistics predicted that 232,000 households are projected to form each year.

Stewart Baseley, executive chairman of the HBF, said: “Help to Buy equity loan is increasing demand for new homes and the industry is increasing its output as a result.

House prices rising at fastest rate for four years

House prices rose by 0.6% in February, a 9.4% increase on the same month in 2013, according to the Nationwide Building Society.

The annual rate of growth is the fastest for almost four years.

It puts the average price of a UK home at £177,846, which is still almost 5% below the 2007 peak.

The Nationwide said sales and prices were being driven by record low interest rates, higher employment and the easier availability of mortgages.

The lender’s chief economist, Robert Gardner, acknowledged that prices could accelerate even faster in the coming months, as more people took the plunge to buy for the first time or move. But he denied a house price “bubble” was being created.

“If you look at prices relative to earnings then housing does look relatively expensive by historic standards,” Mr Gardner told BBC News.

“But if you look at how much it costs to service a typical mortgage, that suggests that housing isn’t overly expensive at this point… because interest rates are at such low levels.”

The Nationwide pointed out that prices were also being driven higher by a continued lack of new homes.

“Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels,” said Mr Gardner.

He added that just 109,500 new homes were built in England in 2013, which was 38% below the level recorded in 2007, and about half the projected number of new households expected to form each year.

Help to BuyHelp to Buy – The Government’s interest-free loan scheme has attracted thousands in just three months.

According to figures released by Department for Communities and Local Government, over 1,000 sales of new-build homes have gone through since the scheme was launched on 1st April, and a further 6,000 buyers have reserved properties, some yet to be built.

Housing Minister Mark Prisk said that the scheme, announced in the Budget in March before launching on April 1, had ‘captured the public’s imagination’.

The help to buy scheme passed the 4,000 reservations mark at the start of June, nearly 3,000 reservations have been made in the weeks since.

Prisk said: “With almost 7,000 help to buy reservations in three months, it’s crystal clear that the Help to Buy equity loan has captured the public’s imagination and is getting Britain building again, which will help achieve a long-term, stable housing market.

“So any credit-worthy buyer, whether a first-time buyer or someone looking to move up the property ladder, should contact a qualified adviser at park gate mortgages or call us on 01489 580020 and see if they could benefit from the scheme.”

The second stage of the Help to Buy scheme, the mortgage guarantee, is set to launch on January 1 2014.

Helping you take the first step onto the property ladder with help from your family with a family affordability plan.

Barclays have introduced a new scheme called Helpful Start ™ is designed to help more buyers get onto the property ladder. The first part of the initiative is the Family Affordability Plan, which enables parents to help their children get on or to move up the property ladder through a joint mortgage without giving a lump sum away.

How does the Family Affordability Plan work?

It allows parents to help their children over the long term with mortgage affordability and commitments through a joint mortgage. Income from parents can be used, alongside the child’s own income, to calculate how much they can afford to borrow. If eligible, they can use the total income on the mortgage application.

If the mortgage is approved, all parties will be liable for the monthly payments. The parent(s) will appear on the mortgage but they won’t be co-owners of the property.

You will therefore be jointly and severally liable for all mortgage repayments and other outstanding sums due under the mortgage. You should not enter into such a plan without fully understanding the risks involved and, as such, we require that each “borrower non-proprietor” take independent legal and tax advice prior to committing (fees will apply).

What happens when the individual wants to go it alone?

When your client is ready to manage the mortgage on their own, we can remove their parents from the mortgage by remortgaging – as long as we’re sure they can afford the monthly repayments by themselves. This is subject to application and status (fees will apply).

Eligibility criteria

All parties must meet the affordability criteria

The plan is only available to residents of England and Wales

Parents must take independent legal and tax advice before proceeding with the mortgage.

For further information or a personal illustration, please call 01489 580020 or email info@parkgate.net to arrange an initial meeting and discuss your requirements.

Eight weeks remain for first time buyers to complete their house purchases in order to avoid paying stamp duty land tax. The tax exemption will end on the 24th March 2012.

Stamp duty land tax will then be charged at 1% on all purchases between £125,000 and £250,000.

Don’t assume that “no news is good news” Please ensure you have returned and signed all your documentation to your Solicitor to ensure that they can complete the transaction before the 24th March 2012.

The Government has announced that it is no longer going to extend the stamp duty holiday for first-time buyers as it claims the policy has failed to increase the number of first-time buyers entering the market.

The Chancellor George Osborne has failed to extend the stamp duty holiday beyond its end date of March 2012, despite calls to do so from industry bodies such as the Council of Mortgage Lenders.

In the 2010 budget, then Chancellor Alistair Darling announced the stamp duty threshold would double from £125,000 to £250,000 for first-time buyers but announced an increase in the rate for properties worth more than £1m from 4 per cent to 5 per cent. The stamp duty holiday is due to end on March 25, 2012.

The autumn statement says: “The government is publishing analysis showing that the stamp duty land tax relief for first-time buyers has been ineffective in increasing the number of first-time buyers entering the market.

“This relief will therefore end on March 24 2012 as planned.

From a recent review of the UK mortgage market, there are currently two hundred 90% mortgages for first time buyers currently available. This may sound a lot, but a closer inspection reveals that not all of these mortgages are easy to come by or available to all first time buyers. Continue reading

Mortgages
life insurance
home insurance
equity release

We offer whole of market advice for all types of customers, whether you are a first time buyer, home mover or looking to purchase a buy to let property. Being independent we are able to offer impartial advice from the whole of the market to ensure you get the product that suits your financial needs.

Whether you are looking to protect your mortgage payments or your family, we provide independent advice for life insurance, critical illness cover and income protection from a wide range of providers.

Buildings Insurance is a requirement when you complete on a mortgage the cover is to provide security to the lender, the insurance covers the main structure of your home. It will cover you for subsidence, storm, flood, fire or smoke damage and cover the costs of rebuilding or repair.

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.