Nottinghamshire’s First Time Buyers could save thousands with deposit incentives
2 July 2009
First Time Buyers in Nottingham can now save thousands of pounds with an increase in deposit incentives, which could fundamentally boost the Nottingham property market, according to property specialists, whitehotproperty.co.uk.
One in three ‘corporate properties’ in the city now include a buyer incentive such as help towards deposit payments – one of the main barriers to first time buyers taking advantage of lower prices. The company selling the property will contribute, usually, 5% towards the deposit meaning that FTBs with 10% deposit saved can apply for 15% mortgages.
Usually the preserve of professional investors, corporate properties are homes sold by companies, not private individuals, and these include repossessions, as well as part-exchanged and probate properties, which are on average, £7000 lower than the general market price, due to the urgency of the sellers to sell.
Owen Burns, director at whitehotproperty.co.uk, said: “There are real opportunities for First Time Buyers to take advantage of low prices in Nottingham. Properties with deposit incentives mean that FTBs can finally break through the – previously unaffordable – deposit ‘barrier’ and get their foot on the property ladder.”
whitehotproperty.co.uk are holding a property buyers event in the Victoria Centre in Nottingham on July 3rd, 4th and 5th.
- Case Studies
Two case studies of Nottingham properties with 5% deposits paid below, including details of affordable mortgages for FTBs (both available on whitehotproperty.co.uk):
Bentwell Avenue, Nottingham
3-bedrooom end terrace house
£89,995
Incentive - 5% deposit paid
Sankey Drive, Nottingham
3-bedroom detached house
£104,950
Incentive - 5% deposit paid
- Details of typical FTB:
Price of home - £104,950
Couple earning £25k p/a each, with £10,500 savings
Applying for mortgages requiring 15% deposit
Corporate seller contributes £5,250 as part of ‘property incentive’
Total deposit available: £15,750
- Mortgages available (according to moneysupermarket.com):
Lloyds TSB – two year fixed rate
Monthly payments of £527
Abbey – two year fixed rate
Monthly payments - £564
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