Help to Buy is good news for property market in Oldham, says local solicitor
Pearson Solicitors’ conveyancing team this week welcomed the latest extension of the Help to Buy scheme.
The first phase started in April, with the government offering a 20% equity loan to buyers of newly-built properties if these buyers have a 5% deposit.
The second phase of the scheme, originally planned for January 2014, has been brought forward so mortgage products are available from now.
Under the second phase, buyers across the UK only need to provide a small deposit, with the government offering a guarantee of 15% of the loan to the lender - for a fee - to encourage the bank or building society to offer the loan. And this week banks and building societies up and down the High Street have signed up to the initiative.
Commenting on the move, Victoria Sweeney, Solicitor at Pearsons said: “This is great news for everyone - from First Time Buyer to those individuals who need to move up the ladder due to having a family and needing larger properties. The fact it doesn’t have to be used on new build properties means the property market as a whole can start moving again and make purchasing property far easier and often the cheaper option than renting.
“As experienced solicitors with excellent customer service Pearsons can guide first time buyers through the process or for those who are in a chain of transactions, ensure the transactions run as smoothly as possible. Buying a property is the biggest asset any person will own and it pays to get it right first time,” she added.
Borrowers who apply will face checks to make sure that they can afford the mortgage payments. The Council of Mortgage Lenders (CML), which represents lenders, said affordability checks would be as "rigorous" as they were with any borrower.
The scheme will be available for first-time buyers and home movers borrowing to buy new and old homes valued at no more than £600,000. It is expected to continue for three years.
Get in touch with Victoria:
Subscribe to our newsletter
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.