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More Help for First Time Buyers
With first time buyers having increasing difficulties over the past few months in securing a first time buyer mortgage, plans announced by the Government this week to boost the housing market have been very welcome.
The 'rent first, buy later' scheme is to be piloted in areas of England and will be open to individuals or couples with earnings under £60,000 a year. Under the scheme, people who qualify could rent the property at a discounted rate for two to three years, with an option to buy part of it. They could buy 25% or more of the property at any time.
Tony Rice, from specialist mortgage brokers TMP Mortgage Zone, said: "Despite the fall in house prices, first time buyers are still finding it difficult to secure a mortgage deal as the credit crunch has put a squeeze on the mortgage market. This scheme gives people the opportunity to rent a property at 80% or less of the standard market rate which means they could put money aside for a deposit and be able to secure a better mortgage deal at a better rate at the end of the two/three year discounted rent period."
[ 18-07-2008 ]
