Archived News

Strong start for Help to Buy, say lenders

November 12, 2013

Strong start for Help to Buy, say lenders

Two major lenders have reported a strong uptake in the first month of the government's extended Help to Buy mortgage guarantee scheme.

Royal Bank of Scotland (RBS) and Halifax said they had received a total of 2,384 applications, potentially worth £365m in mortgages.

The scheme is designed to encourage lenders to offer mortgages with deposits as low as 5%.

But critics are concerned it could help to create a UK housing bubble.

RBS and its subsidiary NatWest, and Halifax - owned by Lloyds Banking Group - are among the few lenders to offer mortgages under the government's extended scheme.

Help to Buy: equity loan scheme surging ahead

October 16, 2013

Help to Buy: equity loan scheme...

The Help to Buy equity loan scheme has captured the imagination of the public with more than 15,000 reservations for new build homes in the first six months, the Government has revealed.

Housing Minister Kris Hopkins said the equity loan scheme, part of the Government's Help to Buy programme, had given the housing market a kickstart by driving up the rate of housebuilding and helping hardworking families buy a home.

Under the equity loan scheme buyers can purchase new build homes with just a 5% deposit, facilitated by an equity loan from the government of up to 20% on properties with a value of £600,000 or less. 

15,000 homes sold under Help to Buy in the first six months

October 10, 2013

15,000 homes sold under Help to Buy in...

There have now been 15,000 reservations under the first phase of Help to Buy.

The announcement was made by new housing minister Kris Hopkins and demonstrates the strength of the boost to the new homes industry.

The scheme was launched in April and takes the form of a shared equity mortgage with the loan of up to 20% having to be repaid when the property is sold. Importantly, the 20% that will have to be repaid will be the percentage of what the property is worth at the point of resale, not the 20% of the original value.

For example, a new home is bought now for £300,000 with a 5% deposit of £15,000, a 20% government shared equity loan of £60,000 and a 75% mortgage of £225,000. When the house is resold, its value has increased to £500,000 and the seller must repay the 20%, which has risen to £100,000.

‘Should I move before Christmas?’

September 24, 2013

‘Should I move before Christmas?’

Chris Rowntree, Associate Director at scottfraser, takes a light hearted look at the pending question, 'Should I move before Christmas?'

I hesitate to mention Christmas as the leaves are still firmly on the trees and the tan hasn't quite faded yet but it is a sad fact of life, with the Halloween decorations already in the shops, that it won't be very long before the festive season will be upon us. Most home owners therefore putting their property on the market today must be allowing their minds to ponder as to exactly where they will be sitting down to tuck into their turkey with all the trimmings (apologies to the vegetarians out there) and indeed are there any discernible advantages in moving in time for Christmas.

House prices dip, says Nationwide (although apparently they rose)

September 04, 2013

House prices dip, says Nationwide...

House prices fell in August, Nationwide has reported.

The price slipped from £170,825 in July to £170,514 in August.

However, as faithfully reported by the media, Nationwide claimed that house prices actually rose by 0.6% in the month and were 3.5% higher than in August last year – when, for the record, Nationwide said the average UK house price was £164,729.

The answer of course lies in our old friend, 'seasonal adjustment'.

However, as EAT pointed out to Nationwide when we asked for a comment as to the difference between smoke, mirrors and seasonal adjustment, the fact is that by Nationwide's own 'actual' figures, house prices had gone down, not up.

scottfraser's guide to  20 Ways to Becoming A Successful Landlord

August 14, 2013

scottfraser's guide to 20 Ways to...

Ahead of tonight's Buy-to-Let seminar, read our guide to becoming a successful landlord.