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New opportunities for first-time buyers

15-Jun-2005

A host of new opportunities for first time buyers have been created in the property market through a variety of industry reforms.

Click here for advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK's leading High Street Brokers, Bradford and Bingley

The recent decision by Chancellor Gordon Brown to raise the threshold for stamp duty and the announcement of a new government-backed joint ownership scheme for first time buyers offered fresh opportunities for Britons to get a foot on the housing ladder.

However, with the current average property price standing at £180,000, housing experts are calling for a further hike in the tax threshold.

Next year shared-ownership reforms will come into effect, when the government will take a stake in properties and rent a stake to the buyer/occupant at a subsidised rent. Mortgage subsidies are already on offer for key workers, but at present many other first-time buyers and professionals are struggling to enter the market.

Click here to learn more about joint ownership, buying with friends or family

Ministers also plan to ensure that banks and building societies are prepared to lend on homes bought through the scheme and hope to persuade lenders to accept a lower rate of return from the new shared-ownership mortgages than on standard loans, The Independent reports.

Helen Adams, director of first-time buyer website FirstRungNow, claimed: "Buyers who act now will be in a good position, should the government's new scheme - as many market commentators expect - cause house prices to rise once again."

Housing associations also offer joint-ownership schemes and FirstRungNow estimates that the number of private house builders offering shared ownership has increased by 74 per cent, with the eligibility for private schemes usually more flexible than government or local authority initiatives.

See what's in our unique, comprehensive and detailed joint ownership guide

To find out more about creative mortgages designed specifically for first time buyers click here

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