The First Time Buyer
The Financial Maze is determined to lend its support to help the first-time buyer take their first step on the property ladder, but these times are difficult.
Some helpful hints for first time buyers:
· Lenders do not like all types of properties so don't waste your time - Talk to us.
· Be organised. Allow us to get your prepared to move forward as painlessly as possible – Talk to us.
· Not all transactions that might be viewed on your bank statements are seen in a positive light by lenders – Talk to us.
· Not all Mortgage advisors offer the same advice – Talk to us.
· There are Mortgages where parents or close family can help a first-time buyer without putting the money into the property itself, with the helper earning a good interest rate on the amount they have supported you with and receiving the full monies back after 5 years – Talk to us.
· There are many more points we can guide you on – Talk to us.
Please Read on for more information.
A 20-year survey conducted by the office of National Statistics in 2017 confirmed that the cost of the average home in England and Wales had risen by 259% since 1997. To put this into context earnings increased by only 68% in the same period. This converts to the average house in 2017 costing 7.6% times average annual earnings, compared to 3.6% in 1997.
To further explain the difficulties of earnings in relation to average house prices, in January 2017 the average house price in the UK was £215243 but by January 2022 this has risen to £273762 (Statista research department) an increase of 27.19%.
If you can’t get on the housing ladder your options are to pay rent or stay with parents or family. This is dead money or a debilitating situation for many people who would have expected to “fly the nest by now” and people are losing out not only of having the safety net of owning their own home, but the loss of growth as detailed above.
So, who can influence this?
Government
As of today’s date, 25th May 2022 when you Google “government support for first time buyers” the 2nd article that comes up is listed as “New scheme to offer first time buyers” this is a government article, that is dated way back to 20th June 2011, when it was published.
On the 19th April 2021 the Government backed the 95% mortgage scheme which was launched. This has been slow on the up take, but apart from a dip through the pandemic there are now plenty of lenders already willing to offer 95% loans.
On the 20th May 2022 according to the Sunday Times the UK has a record number of billionaires at 177 and in the last year have they have increased their wealth by 9.32% but these are not first-time buyers trying their hardest just to get on the first run of the ladder.
I do not intend this to be political because the support for first time buyers has been lacking for many years and more needs to be done, The Financial Maze is committed to highlighting these issues.
Property Tax Duty
As if things are not complicated enough!
Stamp Duty land tax England and Northern Ireland under £500,000.00, no tax for first time buyers.
Land and Buildings transaction tax Scotland under £175,000.00, no tax. First time buyers get relief if the property is over £175,000.00 and will only pay tax on the amount over £175,000.00.
Land Transaction tax Wales under £180,0000 no tax, Wales has no relief for first time buyers.
I recognise that house prices differ massively throughout the UK as do incomes, but should there be no relief for first time buyers in Wales? We need to remind the powers that be, as Welsh, that in the relevant words of Dafydd Iwan “Yma o Hyd” translated “We’re still here” and as first time buyers we need as much support as the rest of the UK.
The Financial Maze is designed to offer free guidance to first time buyers using 35 years’ experience to talk you through the whole process, from the different forms of advice available, the protection policies that you will come across when taking advice, the different mortgages available, the different valuations available and many other areas. We look to negate anxiety, educate, enhance confidence, give you piece of mind and move you forward to your best possible place in this area.
You can contact The Financial Maze @ www.thefinancialmaze.co.uk or gareth@thefinancialmaze.co.ukor ring 07711651394.