Buyers unaware of incentive schemes
In a study of over 2000 homebuyers, the leading house builder Barratt Homes has found that almost two-thirds are unaware of the government’s flagship mortgage indemnity scheme.
One of the biggest barriers that buyers are coming up against is the need to save for a huge deposity in order to be accepted for a mortgage but the Newbuy Scheme which was launched by the government in 2012, is designed to allow buyers – whether first-time or second-steppers – to purchase a new-build property with a mortgage at an LTV of as much as 95%.
On average first-time buyers believe that they require at least a 15% deposit for their first home and althougb Barratt claims that 10% is a more realistic figure, there are a wider range of mortgages available to buyers if they have a 20% deposit saved.
The report from Barratts did produce some good news – the proportion who had difficulties obtaining a mortgage had halved from 30 per cent to 15 per cent compared to last year. There was also a similar decrease in the number of people who had struggled to sell their houses in the current market.
As well as the need for a large deposit on a home, a shortage of affordable homes for first-time buyers was cited as another problem area to for potential house hunters. Only 5% of those surveyed said that they had found it easy to find a property.