As of October 2013, the Government's Help-to-Buy scheme, which provides up to £12 billion of mortgage guarantees, will lift house price growth by increasing the availability of mortgage financing, says the CEBR (the Centre for Economics and Business Research). The Bank of England has said base rates will also be kept on hold until unemployment falls below 7.0%, suggesting rates are unlikely to rise before 2016. This aids stability and helps both businesses and consumers to plan as well as anchoring mortgage costs.
If you are looking to buy property, what should you prioritise? First of all, buying for yourself and your family sets different priorities than if you are buying to let. You already know how many bedrooms you'll need, and the additional spare room would be handy if budget permits. So what's next?
The government has created a bonanza for first time buyers, but with the next general election looming in 2015, first timers need to get in quick!
What's the deal for first time buyers?
Help To Buy Scheme – features
It runs from 1st April 2013 for 3 years
Any buyer with a 5% deposit already saved will be able to borrow an extra 20% as a loan from the Government.