With the high price of renting, many people are now looking into buying a home for the first time. One aspect that is making that possible is lower interest rates, with a fixed 30 mortgage rate being as low as 4% in some regions. The development of more cost efficient building materials helps as well, but the main drive seems to be that the traditional 10% down payment ona a home has been lowered to a mere 5% by most companies.
- According to trade body, UK Finance, the number of first time home buyers shot up dramatically aided by government incentives and competitive mortgage deals.
- Some of the schemes identified that helped first time buyers are those provided by Help to Buy and also the reduction on rates offered on mortgages.
- An expert identified Lloyd’s Lend a Hand deal as a good example of lenders who offer 100% mortgage to first time buyers with parental guarantee.
““Those looking to buy their first home need to move quickly as the next logical step in this cycle is for the number of available houses to tail off, pushing prices sky high.””