While owning property is a huge goal in life for so many households, there are many challenges to overcome. Saving for a deposit is crucial, and the costs of doing so are prohibitive for many would be property buyers.
However, the new Government backed scheme allows prospective buyers to purchase a home with just a 5% deposit.
What an opportunity to buy your first property or upsize your current property
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
Do you know the Biggleswade housing market?
According to Rightmove, as of June 2021, Biggleswade house prices are as follows:
“Properties in Biggleswade had an overall average price of £321,133 over the last year.
The majority of sales in Biggleswade during the last year were semi-detached properties, selling for an average price of £316,781. Terraced properties sold for an average of £258,513, with detached properties fetching £424,689.
Overall, sold prices in Biggleswade over the last year were 3% up on the previous year and similar to the 2018 peak of £318,006.”
The average price is well below the maximum price criteria, so there is nothing to worry about in that regard.
5% of £321,000 equates to just over £16,000. This is still a tidy sum which must be saved by would-be buyers, but it is within financial reach for many households.
By comparison, any buyer having to place a 20% deposit on the average price paid for property in Biggleswade would need to save £64,200. This is a sum that would be beyond many prospective buyers, so you get an immediate feel for how important the 5% mortgage guarantee scheme is.
If you are a first-time buyer, or you are keen to upsize your current property, this is a tremendous opportunity which might change your outlook on buying a property. If you would like to discuss your options in and around Biggleswade, please get in touch, and we will be happy to help you.
There is help for those who need it
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 line with Government guidelines, our Biggleswade branch is open and our and lettings personnel staff are on hand to assist you. If you have any queries or need advice on property sales and lettings then please call 01767 317799 or email firstname.lastname@example.org.