BUDGET: Ben Leach from Vision Independent Financial Planning said mortgage help was appreciated
Ben Leach from Vision Independent Financial Planning based in Falmouth said any help was appreciated after new mortgage schemes were launched by the Chancellor in today's budget.
He said: "Any schemes to help get first time buyers and buyers with small deposits on the property ladder is helpful in the current climate, especially in Cornwall where house prices are so high compared to very modest incomes.
"This scheme seems to be very much like the new buy scheme the government started last year where only a 5% deposit was required to purchase a new build property and a guarantee was offered for the remainder of the depsoit required to enable buyers to buy a new build house under the curent lending guidlines set by the banks.
"The take up on the old new buy scheme was very low compared to expectations and I wonder whether this scheme will be any more successful.
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"The problems are that there are only a few lenders that will lend under these schemes and applicants still need to meet affordability criteria.
"I think potential buyers need a greater understanding of the schemes available and people get scared by the schemes because they do not undertand them also most people just want to buy a house in the normal way and the only way this can happen is if the banks loosen their criteria and the need for bigger deposits to get a good rate."
Time will tell which lenders will support this new scheme, what rates they will offer and what criteria they will set but as I have already said anything is a help in this market.
Comments
by CallingtonFox
Wednesday, March 20 2013, 10:50PM
“"Time will tell which lenders will support this new scheme, what rates they will offer and what criteria they will set..."
And that is what worries me; plus, how easy is it to save fora 5% deposit on a 1 bedroom house that a very quick search shows prices of well over £100,000? In other words, if you are lucky enough to find a 1 bed house for £100,000 (brand new) where will you find the £5,000 deposit? How many low wage earners can spare that amount easily?
The idea might be alright but how many people will it actually help?”