Second part of Help to Buy brought forward!

Second part of Help to Buy brought forward!

The second phase of the Help to Buy government scheme has been brought forward from its previous launch date in January 2014 to 7^th of October 2013! David Cameron has expressed his understanding that the need for this is now.

The second part of the Help to Buy Scheme is a mortgage guarantee, the government will back up to 15% of the mortgage for borrowers with deposits as little as 5%. The aim is to make mortgages more readily available. However there is still a strict process borrowers will have to go through to obtain the mortgage such as rigorous affordability checks. The property being purchased will have to be the sole property and cannot be bought as a second home or buy to let.

There are already several lenders signed up to the scheme although it has not yet been revealed how much the government guarantee will cost the lender. The lender will have to pay a fee for the mortgage guarantee, in the case of a property getting repossessed and not being able to recover the loan from the sale the government will cover 15% of the loss. This is to deter lenders from allowing loans to anyone and everyone and ensuring the loans are affordable for the borrower.

First time buyers and existing property owners are eligible for the scheme and the second part is for new and existing properties. Some banks are welcoming the news of the scheme being brought forward, offering longer opening hours in busy periods, although mortgage brokers fear a flurry of new applicants.   

New interest rates on these new government backed mortgages are yet to be revealed as is the fee for the lender. Applicants can apply for the scheme as early as next week.

Second Part of the Help to Buy Scheme Revealed by George Osborne

Second Part of the Help to Buy Scheme Revealed by George Osborne

In a recent meeting with mortgage lenders and housebuilders, George Osborne explained the terms of the second part of the Help to Buy Scheme to be launched in January 2014 on property purchases up to the value of£600,000.

There are worries that the Help to Buy Scheme will inflate house prices and lead to a housing bubble. The Homeowners Alliance is also sceptical that it may cause people to take on huge mortgages.

George Osborne has laid out strict terms for the scheme hoping to avoid these negative issues. Purchasers applying for the scheme will undergo strict income checks and will be made to sign a declaration to declare that they are not using the loan guarantee to secure a second home. These checks will determine whether the buyers can afford the mortgage.

The aim of the scheme is to allow more people to be able to afford a home loan without having to save for a large deposit. Ministers claim that the second part of the scheme could enable up to 190,000 new mortgages each year over the 3 years of the scheme.

Lenders will have to pay a fee, the amount which has not been concluded yet, for each mortgage guarantee. The lowest interest rates are usually on mortgage with a LTV of up to 60%. This makes borrowing a lot more expensive for potential buyers with small deposits. The second part of the scheme aims to enable lenders who offer mortgages with a high LTV a chance to buy a ‘guarantee’ on the portion of the mortgage between 80% and 95%.

Potential borrowers have to go through ‘stress testing’ and income verification to ensure they can afford the mortgage. Anyone with a bad credit history will not qualify for the scheme.

For more information visit our dedicated Help To Buy website www.helptobuy.me.uk

Online Conveyancing Advice and Information

Online Conveyancing Advice & Information

What is Conveyancing?

A common question asked is “What is conveyancing, what do the conveyancers actually do?” It is a difficult question to summarise briefly as each case is different and will require different work. When you come to buying, selling, or remortgaging your home there are many legal processes and work which is legally required to be carried out. The process contains many different aspects depending on each particular case. If you are purchasing a property your conveyancer will ensure you are buying what you think you are. Searches will be carried out against the property which may reveal things about the property that the buyer needs to be aware of. Also the Title of the property needs to be changed to the new owner or lender and this requires to be registered with the Land Registry.

 

The conveyancer will write up a legal contract which details all the information required about the property; fixtures and fittings, boundaries, sale price, drainage, gas, legal restrictions, planning restrictions and other relative details. Throughout the process your conveyancer will liaise with the other party’s solicitors to answer any questions and negotiate the legal contract. The conveyancer will also arrange and carry out the exchange of contracts and completion of the transaction.

Online Conveyancing

We specialise in Online Conveyancing. We do not require for you to come into the office (although you are more than welcome if your local) all the work is carried out efficiently over phone and email. At the beginning of the process you will receive details for your online ‘Case Tracking’ system. Here you can monitor the progress of your case 24/7 and see what stage your case is at.

We also provide text and email updates when each stage of your case is completed. As a client you will receive a dedicated conveyancer and an assistant from the beginning to the end, you won’t be passed around to numerous people.  

As mentioned in a previous blog we were 3^rd place for ‘Best Conveyancing Service’ at the 2013 Mortgage Strategy Awards. We pride ourselves in giving an excellent service at a competitive price.

If you want any more information about our services please visit our website and get in contact.

www.iconvey.co.uk

Help to Buy showing positive impact upon the housing market!

Help to buy showing positive impact on the housing market!

The new government Help to Buy scheme is proving to be a big success. The scheme has beaten forecasts which were predicted to show positive signs regarding the housing market. According to the Home Builders Federation (HBF) 4,000 people have reserved a new home under the Help to Buy scheme since it has been live over the last 2 months. In conjunction with this the interest in the scheme has been huge and more than 500 buyers each week are signing up for the new scheme.

 

House prices rising

Halifax has also pointed out that UK house prices are rising at their fastest rate since September 2010. Launched in April 2013 the Help to Buy scheme offers first time buyers and existing homeowners an interest-free (for the first 5 years) loan to build upon a deposit to help them buy a new build property. The buyer only needs to raise a 5% deposit to qualify for the scheme and the government then contribute a further 20% enabling the buyers to get a better rate, more affordable mortgage and move on/up the property ladder.

Experts Criticism

However the data showing evidence of house prices increasing is likely to cause criticism of the Help to Buy Scheme. Some experts have warned of a housing bubble with house prices inflating to high levels. The scheme is currently set to run until 2017. Halifax have stated that the average price of a UK home is now £166,898 which is an increase of 3.75 compared with May 2012 when the average UK house price was £160,906.

Although there are signs of improvement regarding the housing market these are still limited with our low economic growth and weak income growth. These issues will be a constraint upon the housing market in the long term.

First time buyer’s increase

The number of first time buyers taking on mortgages increased by 15% in April when the scheme began, according to property group LSL. This may have been due to the support of the scheme and lenders becoming more flexible about offering mortgage with high Loan to Value proportions.

If you want more information about the Help to Buy scheme or a quote for your conveyancing Help to Buy transaction then visit our dedicated Help to Buy website.

Click here for more information about Help to Buy

The Waitrose Effect

The Waitrose Effect

Would a Waitrose in the vicinity of a property sway your decision in buying a home?

Savills have released recent research which showed having a Waitrose nearby increased property prices in the area. There are two ways to look at this, firstly people want to live close to a Waitrose or secondly areas which Waitrose locate are where property prices are increasing.

In London the ‘Waitrose Effect’ shows a significant difference. There is a 50% increase in property prices in areas with a Waitrose, compared with areas that do not have a Waitrose. This difference is not as drastic in other areas but still apparent.

The outcome of this research was that the typical price of a property with a Waitrose nearby was 25% higher than if there was no Waitrose. Although the answer is not determined by the increase being due to a Waitrose, there sure is a definite trend in the relationship. However it does seem bizarre that the arrival of a supermarket should have this effect on property prices.

Waitrose is known for its higher end groceries and perhaps by placing a branch in a particular area represents the area as being socially approved and an aspirational area to live in. There is always the argument of which came first however, was the area upmarket and attracted a Waitrose branch or did Waitrose place a branch in an area and this lead to a positive knock on effect on the prices of property.

What’s your opinion? Would you pay a little more to live somewhere you had a nice deli selection?

Help to Buy Scheme

Help to Buy Scheme

The new government Help to Buy Scheme was launched in April 2013 as a result of the Budget 2013. As always there are mixed opinions regarding whether the scheme will benefit the UK property market or not. In my opinion anything which makes homes more affordable and enables people to get onto/move up the property ladder is a good thing in today’s market, as long as it doesn’t lead people into money difficulty in the long term.

How does it work and who can qualify?

To qualify for the Help to Buy Scheme there is currently no cap on income and the scheme is available on properties up to the value of £600,000. Unlike many of the other schemes aimed at getting the property market moving Help to Buy is open to first time buyers AND existing property owners. As the buyer you will be required to raise a 5% deposit and the government will then provide you with an added 20% equity loan resulting in you needing a 75% mortgage, this will enable you to achieve lower (affordable) monthly payments and a much better interest rate. The equity loan provided by the government is interest free for the first 5 years and then incurs interest of 1.75% by year 6, which rises annually by 1%. The loan can be repaid at any time or upon sale of the property.

Currently the Help to Buy Scheme is only available on new build properties; however as of January 2014 the scheme will be available on new build and existing properties, making it available to the vast majority of the property market. It has been queried that this will just fuel the rich enabling them to buy second homes and more buy to let properties, however the scheme is only available if the property is your main home and it is not available on buy to let’s or second homes, eliminating people from abusing the scheme.

 

Help to Buy Conveyancing Services

As professional property solicitors we are well experienced in new government property schemes and will be able to deal with your conveyancing requirements efficiently and effectively. We have dealt with many similar transactions such as HomeBuy, FirstBuy, Shared Ownership and Shared Equity. We can offer you expert advice on the services you require for your Help to Buy transaction. If you want to read more about the Help to Buy scheme visit our dedicated Help to Buy website: www.helptobuy.me here you can find out more information, obtain a conveyancing quote and use our Help to Buy calculator to find out what you can afford.

Our new blog!

Hello, we are launching a brand new exciting blog for iconvey. If you are interested in anything property or conveyancing then our blog is for you. We will write regular interesting posts about conveyancing and the latest property news. From working in the property industry it has become apparent to me how many property addicts there are out there, so hopefully you will find our blog an addictive read.

We are one of the UK’s top conveyancing firms, as recently highlighted in the prestigious 2013 Mortgage Strategy Awards where we won 3^rd place for ‘Best Conveyancing Service’. We are also proud to say we are accredited under the Law Society’s ‘Quality Conveyancing Scheme’ hopefully this proves to you we are dedicated and experts when it comes to conveyancing.

At iconvey we specialise in nationwide online conveyancing and are very passionate about what we do. As online conveyancing solicitors we strive to give you reassurance and that personal touch but with a competitive price. We cover all types of conveyancing from Buying, Selling, Remortgage, Commercial and Equity Release.

If you are thinking about moving home soon then why not see for yourself how competitive our quotes are. You can get easily get an online quote from our website www.iconvey.co.uk

Myself and my colleague (Martin Lake) will be writing a range of engaging and informative posts to keep you up-to-date and in the know with all things property and conveyancing. Follow, bookmark and share any of our posts you find interesting. We welcome all your comments and feedback. Why not let us know what you want to see discussed on our blog?


Watch this space for our first informative conveyancing post!...