New home, new challenges

New home, new challenges

Since the financial crisis, potential buyers have faced a series of challenges within the property market.

The head of mortgage policy at BSA, Paul Broadhead, believes that in recent months, this is as a result of ‘a new requirement for a lender not only to establish that a borrower can afford the loan at the current interest rate, but also if the rate were to rise.’

Clearly lenders are being more selective than ever before. For this reason, many are turning to the Help to Buy initiative for financial support.

Low Deposits

A major challenge for soon-to-be home owners is paying the deposit. According to a recent survey, around a third of people consider it to be the largest obstacle when buying a new home.

However, those looking to enter the property market, or even to upscale, can get all the help they need from recent government initiative, Help to Buy.

Help to Buy is split into two schemes; the equity loan and the mortgage guarantee. It’s ideal for buyers who are struggling to meet the rising cost of house prices. With each scheme, you are only required to pay a 5% deposit.

Traditionally, the average deposit ranges from 20-25%. But thanks to the Help to Buy, home ownership is now more accessible to prospective buyers. Those interested in learning more about the scheme can find a full breakdown here.

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Categories: Featured

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Barratt Homes

Barratt Homes is one of the largest residential property development companies in the UK. Founded in 1958, they’ve grown to become one of the largest and best known home builders in the industry that includes some of the sector’s most successful brands: Barratt Homes, David Wilson Homes, Ward Homes, Barratt London and Wilson Bowden Developments. These businesses build and sell thousands of new homes and commercial and mixed use property, ranging from starter and family homes, through to exclusive luxury apartments, and offices to retail parks. They also provide affordable homes for rent and shared ownership, helping meet Britain’s growing housing need in towns and rural areas across the country. Barratt is officially the highest quality major national housebuilder, having achieved 5 star housebuilder status; they are the only major national housebuilder to have been awarded the maximum 5 star rating for five years in a row. In their citation judges recognised them as an “outstanding all-rounder, showing prowess in the fields of zero carbon, regeneration, design and landscaping.