{"id":10473,"date":"2018-01-25T10:15:04","date_gmt":"2018-01-25T10:15:04","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=10473"},"modified":"2018-01-25T10:15:04","modified_gmt":"2018-01-25T10:15:04","slug":"opportune-time-for-first-time-buyers-with-small-deposits","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/2018\/01\/25\/opportune-time-for-first-time-buyers-with-small-deposits\/","title":{"rendered":"Why now is an opportune time for first-time buyers with smaller deposits"},"content":{"rendered":"

With the government\u2019s decision to scrap stamp duty for first-time buyers, and the base rate rise having little impact on mortgage rates with a 95% loan-to-value,\u00a0this year is looking promising for prospective first-time buyers wanting to get on the property ladder.<\/strong><\/p>\n

Since the base rate rise<\/a>, the average two-year fixed rate mortgage with a 95% loan-to-value<\/a> has fallen 0.12% to 4.09%, and the equivalent average five-year fixed rate has dropped 0.01% to 4.49%. According to Charlotte Nelson from MoneyFacts, borrowers with only a 5% deposit <\/a>seem to be more highly valued by mortgage lenders at present, and there is increased competition to be seen as the \u2018go-to\u2019 lender for first-time buyers.<\/p>\n

Nelson also highlights that there is an array of incentive packages and fees available, allowing borrowers to be selective based on their own needs. Currently cashback offers<\/a> for borrowers with a 5% deposit are an average of \u00a3419, which is a welcome bonus for budget constrained first-time buyers.<\/p>\n

More savings means more deals<\/h4>\n

While the 95% loan-to-value mortgage rate drop is a positive one, borrowers that can save<\/a> a 10% deposit could make more significant savings. Since loan-to-value rates are significantly better at 90%, at an average rate of 2.65% (MoneyFacts), if first-time buyers can save that extra 5% deposit, their monthly savings on mortgage repayments could be as much as \u00a3153.22.<\/p>\n

There has been criticism<\/a> of the government’s stamp duty cut, with some voicing concerns that the move will push property prices up, but most reports only forecast a relatively\u00a0small house price<\/a> uptick in the UK in the year ahead.<\/p>\n

Experts predict that the market will see the entry of more first-time buyers this year<\/a>, mainly due to interest rates remaining relatively low and fairly slow house price growth. Supported by the stamp duty changes<\/a>, the extension of the Help to Buy<\/a> scheme and the availability of more shared ownership schemes, the year ahead looks set to be a positive one for many hopeful first-time homeowners.<\/p>\n","protected":false},"excerpt":{"rendered":"

With the government\u2019s decision to scrap stamp duty for first-time buyers, and the base rate rise having little impact on mortgage rates with a 95% loan-to-value,\u00a0this year is looking promising for prospective first-time buyers wanting to get on the property ladder. Since the base rate rise, the average two-year fixed rate mortgage with a 95%… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":10537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,26,6],"tags":[251,84,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/10473"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=10473"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/10473\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/10537"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=10473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=10473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=10473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}