Thinking of investing in your first home? Knowing what’s happening in property right now helps you make the right decision.
First time buyers underpin the housing market in many ways, since without movement in that vital first-step-on-the ladder market segment, a gap is created further along the buyer chain. Rising house prices have squeezed many first time buyers out of the market, with deposits rising beyond the reasonable reach of the majority of would-be buyers.
Following recent government encouragement to lenders to improve this situation, many are now offering 95% mortgages in attractive deals. The news is good, as it opens up this market sector, putting more people in a position to buy.
The catch is that lenders scrutinise buyers very carefully. Some of the qualifying aspects they look for include:
• Excellent Credit Record - Good credit ratings are vital to demonstrate the ability to handle debt. Buyers are encouraged to check their rating, and improve it if necessary before applying.
• Good Spending Habits - Lenders want to see buyers don’t fritter away their money, or rely on parents for regular financial help.
• Regular Income - Sounds like a no-brainer, but it means the self employed or contract workers have to work harder to convince lenders of their financial stability.
The first time buyer market is healthier than it has been for years and an reputable estate agents like Enfield’s can advise you all the way.