What Options Do First Time Buyers Have In The Current ‘Credit Crunch’ Market?

By Joseph Kenny

The average cost of a house in the UK is now 130,000 this can be a pretty daunting figure for first-time buyers. But there are still options for first time buyers in the current market.

The first option may or may not be suitable for you, but it’s something worth considering. In the North of England, the average house is price considerably lower than in the south, especially compared to the southeast. The gap is nowhere near as great as it used to be, but 5% deposit on 90,000 may be an easier option, with lower monthly mortgage payments.

Under new tax rules, there is a tax exemption scheme known as ‘Rent-a-Room’, which will allow you to earn 4,600 each year by renting out one room in your home. This additional income is often taken into account when lenders are considering giving you a mortgage. They may allow you up to four times that income, which would add nearly 20,000 to the size of the mortgage you could obtain.

Another common practice is to buy a property jointly with a friend, or maybe your brother or sister. This requires a legal agreement properly drawn up which takes into account how much cash each person is investing in the property. This is in terms of amounts of cash deposit, and also if the mortgage payments are equally split or not. This is essential to avoid arguments, should you have a disagreement or when you sell the property.

If you’re fortunate and your family have a little money set aside. You may be able to ask them to contribute towards the deposit amount. Another way they could assist you is by acting as guarantor for your loan. But this would mean that if you cannot make the payments they would become obliged to make them for you.

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One of the better options for first time buyers in the current market could be to purchase a brand new property. The advantage of a new property is that it comes with all new fixtures and fittings. And will be in good condition, requiring little maintenance. Many builders will now give very generous deals for first-time buyers.

Properties previously owned by the local council are usually of very solid construction with good size rooms. They potentially offer excellent value for money in comparison to houses that have always been private.

Shared ownership schemes are now becoming popular, and are run by housing associations all over the country. They are set up to help people on lower incomes who want to become property owners. Under this type of scheme, you only buy a share in the house of for example, 50%. You then only need a mortgage for 50% of the value of the property.

You will also have to pay rent on the other half of the house, but this is usually set at a much reduced rate. Over time you can buy more shares in your house up to the full 100%. When the house is sold you are entitled to your share, for example 50%, including half of the profit.

Auctions can provide interesting options for first time buyers in the current market. Properties that are sold via auction very often sell for far less than if the same house was sold by the local estate agent. It will be possible for you to view properties before they are auctioned. It is necessary to arrange a mortgage before bidding, and you will be required to put down a deposit if you are the successful bidder of around 10%.

The usual amount of the deposit required by banks and building societies is a minimum of 5%. They require this not so much because they want you to have the money to put down. It is more a case of you proving that you can put by a regular amount of money every month for a couple of years. That says to them that you are both disciplined and serious about your mortgage commitment.

Not all options for first time buyers in the current market require a deposit, someone lenders will now offer 100% mortgages to first-time buyers. Interest rates tend to be, slightly higher than if you had put down a deposit.

There are even a handful of lenders that may allow the first-time buyer slightly more than 100% of the value at the house. This is to cover such things as legal fees. On the surface this can be a good deal, the only drawback is that some companies will impose what are known as, indemnity premiums, which can be quite high.

As you can see from everything above, there are still options for first time buyers in the current market. And a capable broker should be in a position to assist you to find a suitable mortgage, depending upon your situation.

About the Author: Joe Kenny writes for Glitec.org, offering cheap

online mortgages

and

homeowner loans

or visit Rebuild.org for great

mortgages

.

Source:

isnare.com

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House Selling Tips: What A Residential Basement Waterproofing In Washington, Dc Will Accomplish

byAlma Abell

The time is approaching when the homeowner would like to retire and move to a smaller home. That means making sure the present home is ready to go on the market. Between now and retirement, it pays to have a professional check out the basement and see if waterproofing is in order. Here are some of the reasons why investing in a residential basement waterproofing in Washington DC before putting the house up for sale makes sense.

Eliminating Mold

While most buyers will not expect the basement to be the main draw, they will want the space to be in reasonably good condition. Basement walls and floors that show signs of mold growth and, possibly, some mildew on the items stored in the space will not conjure up visions that entice home seekers to put in a bid.

By choosing to have an expert conduct a Residential Basement Waterproofing in Washington DC, the homeowner can rest assured the mold will be removed first. Once the waterproofing is complete and all those damaged items are carted away from the house, it will be easier to arrange what’s left and ensure the space is free from any type of unpleasant scent.

Seeing the Possibilities

When buyers inspect the basement and see that the space is properly sealed and waterproofed, they can begin to imagine all sorts of ways to use that square footage. If the plan is to keep using the space for storage, the buyers will know their treasures will not be damaged by the damp. Those who like the idea of turning the space into a spare bedroom, a game room, or a den will also find it easier to imagine the transformation if they don’t have to think about waterproofing the basement first.

Commanding a Better Price

When there’s more space that can be used for living quarters, it’s easier to ask a higher price for the property and receive bids at least close to that price. A waterproofed basement does quality as potential living space, so expect buyers to take that into consideration as they ponder the idea of submitting a bid.

Contact us today and arrange for a professional to take a look at the basement. It won’t take long to determine what must be done in the way of preparations, provide a quote, and set a date for the waterproofing.