If you are keen to buy property, but have struggled to raise a deposit, you are not alone.
Putting money aside to increase your deposit is an issue for many buyers, but help is available from a new Government backed scheme.
At BR Estate Agents, we are pleased to see anything which helps people step onto the property ladder. Also, when you have more likely buyers in the market, sellers benefit too. Therefore, many people will feel the benefit of this scheme.
Lenders involved with the scheme include:
The criteria of the scheme is based on:
- Buyers can purchase property valued up to £600,000 with a 5% deposit
- The scheme is open to first-time buyers, and existing homeowners
- The scheme is not limited to new-build property, it can be used on all manner of property
- The scheme aims to help buyers by incentivising lenders to provide more affordable mortgages to more buyers
According to Rightmove, as of the end of April 2021, the Bromley housing market can be described as follows:
“Properties in Bromley had an overall average price of £529,109 over the last year.
The majority of sales in Bromley during the last year were terraced properties, selling for an average price of £457,102. Flats sold for an average of £333,286, with semi-detached properties fetching £593,595.
Overall, sold prices in Bromley over the last year were 9% up on the previous year and 9% up on the 2017 peak of £486,188.”
Therefore, the average price of property in Bromley falls below the threshold, so buyers in the local area should be able to capitalise on this scheme, if required.
There is help for buyers
Robert Jenrick, Housing Secretary, comments: "For too many people, no matter how hard they work, homeownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot. That’s why we are determined to do everything we can to help hard-working families and prospective first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country. The new mortgage guarantee scheme which comes into effect today will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.”
The Housing Secretary concluded by saying; “Despite the challenges faced over the past year, the government has intervened to protect jobs, support builders and buyers to help keep the housing market healthy. Today’s 95% mortgages launch further strengthens our commitment to build back better from the pandemic. In recent years we’ve reversed the trend and seen a positive increase in owner-occupiers. We’re determined to build on this through the range of flexible ownership options which help ensure homeownership is achievable. We want to match the ambitions of aspiring homeowners up and down the country. Together we can turn ‘Generation Rent’ into ‘Generation Buy’.”
Tim Bannister, Rightmove’s director of property data, says: “The new mortgage scheme could help some first-time buyers bring their plans forward if they have a lower deposit but are still able to pass the affordability checks, and will be welcomed by those who last year we’re struggling to come up with a 15 or 20% deposit. Although the number of new properties coming to the market is improving, it’s still nowhere near enough to satisfy the buyer demand that is already at record levels, and so more people choosing to trade up will be vital to open up more choice at the start of the property ladder.”
If you are looking to make a move in the Bromley property market, and you would like to speak with local experts, please get in touch. If you would like to arrange a property valuation, contact us and we will set this up for you. You can phone your BR Estate Agent on 020 3633 8620 from 9am till 9pm seven days a week or visit our website www.br-estateagent.co.uk for more information.