It was quite a night for Britain at the polls, with surprise results across the country. However, it was the Conservative Party that clinched the majority and will now take sole helm at Downing Street for the next five years. But what does this mean for first time buyers and families looking to buy a new home?
According to research by eMoov.co.uk, the majority of UK homeowners (57%) were unsure about the repercussions of this election. When asked about their concerns, 27% stated a rise in interest rates and a further 20% worried house prices would continue to increase.
Half thought more needed to be done for first time buyers. It seems the Conservatives’ efforts campaigning to this end of the market, with a Help to Buy ISA and promises to extend it, have paid off.
5 reasons why it’s a good time to buy a new home or your first home:
1. Help to Buy Equity Loan - with a 5% deposit, the government will lend up to 20% as an equity loan. You can then apply for a mortgage based on the remaining 75%. The loan is interest-free for five years and the scheme available on new build homes up to £600,000.
2. Help to Buy Mortgage Guarantee - with a 5% deposit, you can apply for a 95% mortgage from participating banks or building societies with the government providing a guarantee of up to 15% of the home value. Available on new build and existing homes up to £600,000.
3. Help to Buy ISA - for every £200 you save, the government will give you an extra £50 towards a deposit so you can save for that new home sooner than expected.
4. Stamp Duty reform - like Income Tax, this has divided house prices into different bands, creating tax brackets, with no tax on homes worth up to £125,000.
5. Low mortgage rates - homeowners can fix for two years at just 1.09 per cent and up to ten years at less than 3 per cent.
Do you think there is more the new government could do to help homeowners and first time buyers? We’d love to hear your views on Facebook or Twitter.