In today’s market buying a house is not easy. Not only are we currently trying to recover from the recession and having to live on less money but also we have a recurrent situation where we see house prices rising and falling! At present there seems to be a sudden increase again which may be a good thing for the home owner wishing to sell, however this only adds to the angst and distress for those looking to buy.
Britain introduced the ‘Help to Buy Scheme’ recently to support those trying to get onto the ladder. As the market saw a sudden rise in house prices and a recurrent growth in property prices, many believed we would be destined for another housing crisis but thanks to the government’s plans to get bankers to support ‘state backed mortgages’ we are now seeing a light at the end of this long and perplexing tunnel.
What are the benefits?
Thanks to this new scheme, buyers can get onto the property ladder by putting down a small deposit of as little as 5 percent. For most buyers finding a hefty deposit is without a doubt one of the most difficult things to accomplish and within a situation where banks were simply ‘not lending’ it was almost impossible. This scheme will come as a warm welcome for many and not only is it a great thing for buyers but also a positive way of pushing forward bankers into building relationships with lenders again, ultimately building the trust between the two and helping to restore people’s faith in the banks.
This new scheme was pushed forward by the prime Minister and chancellor George Osborne to help boost the already recovering economy and many believe that this is a desperate attempt at boosting the Conservatives appeal ahead of the 2015 general election, as similar situations have been apparent in the past – we once saw Conservative Prime Minister Margaret Thatcher push forward the scheme which allowed people to buy their rented accommodation from their local authorities in a similar manner. Either way, this new scheme is set to increase and guarantee mortgages by up to 15 percent which can only be a good thing.
Aimed at helping to support the low income or middle class working families, this new government backed scheme comes as a breath of fresh air. Not everybody is born into wealth, so to be able to easily buy a home should help alleviate one of the major burdens in most people’s financial lives. While there is a rush to get these state back mortgages, and some critics are saying that this influx of buyers who would not have traditionally qualified for a mortgage is a replication of the behaviour that caused the economic crises, most people should see this as a step forward. For those people who still find it difficult to raise the 5% deposit, or are unable to show the proof of work required for this scheme – renting through a company like Rentify continued to make the best sense in the London area. A company like this can act as a broker between the tenant and landlord, making for a smoother renting experience.