If you have been looking to buy your first home over recent years it has been tough. Access to low-deposit mortgages has been a problem for many first-time buyers meaning that few have been able to save up the necessary deposit to buy.
However, there are signs that this situation is beginning to change. Here, we look at two initiatives which are set to increase the number of first-time buyers entering into the market in 2013.
Two government initiatives helping first-time buyers
A poll of local authorities who have signed up to a government mortgage initiative has found that the scheme has given a significant boost to first-time buyers.
If you're looking to buy a new-build property worth less than £600,000, the Help to Buy scheme offers an equity loan at up to 20% loan-to-value. You will be expected to supply a deposit of 5% to qualify for the loan which is interest-free for the first five years and repayable when the house is sold.
According to a poll of local authorities who signed up to the scheme, the mortgage deal has given a major boost to first-time buyers. The survey found that 78% of local authorities found that the initiative has had a positive impact and nine in 10 would recommend the scheme to other councils.
And it's not the only government initiative that is helping first-time buyers to access mortgages if they don't have a large deposit. The British Bankers Association (BBA) says that the government's Funding for Lending Scheme - launched last August - has helped increased the availability of mortgages.
The Independent reports that "in particular there have been more deals aimed at first-time buyers, which should get the property market moving." BBA statistics director, David Dooks said: "The prospect of more first-time buyers entering the market during 2013 is likely to help mortgage chains."
Keith Osborne, editor of WhatHouse.co.uk agrees. He says: "The combination of local authority backed schemes and a wider range of high loan-to-value mortgages has clearly helped first-time buyers. Now, new property owners have access to affordable mortgage finance without having to put down a sizeable deposit, which can only help thousands of people to afford their first home."
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