2016 – is it the year for first-time buyers to make their move?

Posted 4 January 2016 by Helen Christie

Does owning your own home feature on your 2016 New Year’s resolution list? If so, you may be in luck...

Lynda Clark, property expert and editor of First Time Buyer Magazine believes that “2016 is going to be a great year for first-time buyers.”

With even more 95% mortgages being offered, plus more government lending available as a result of the Chancellor’s Autumn Statement, 2016 could be a great time for first-timers to get onto the property ladder and potentially enjoy a further uplift in house prices.

Here are a few reasons why 2016 is looking to be a good year...

Help to Buy

The government scheme allows homebuyers to secure a brand new home with a 5% deposit with access to more affordable lending rates thanks to an equity loan. Those in London can now borrow up to 40% of the value of the property while other buyers can expect to borrow 20%. Read more about Help to Buy

Shared Ownership

First-time buyersDue to extra government funding, shared ownership has been extended and is now available for 175,000 more households. This means that more first-time buyers can purchase between a 25% and 75% share of a property and pay rent on the remaining amount. Read more about Shared Ownership

Starter Home Initiative

The government will fund a 20% price reduction for 200,000 new homes built for first-time buyers. This is only open to first-time buyers under the age of 40 and on homes where the discounted price is less than £250,000 outside London and £450,000 in London. Read more about the Starter Home Initiative

Help to Buy ISA

If saving is the issue, and you aren’t quite there yet, the recent launch of the Help to Buy ISA is a great way to start. Over the next four years first-time buyers could enjoy a boost of £1 for every £4 put away until a combined total of £15,000 is saved. Read more about the Help to Buy ISA

Buyer confidence is high

First time buyers are not in an existing chain, which makes them appealing to vendors, and as a result, first-time buyers will be in a better bargaining position than someone with a property to sell.

Although the threat of rising interest rates could cause a problem, Lynda still believes that as long as first-time buyers are sensible with their financial decisions, homeownership will still be beneficial. “2016 is an exciting time for first-time buyers to take control of their finances and discover what opportunities are available to them. There are a great number of really useful buying schemes now available which are making homeownership a much more affordable option.”

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