12 November 2010

Mortgage lending remains restricted, which is particularly affecting any first time buyers looking to move onto the property ladder. The prospect of saving a high deposit has caused this type of home buyer to search the market extensively for the right property at an affordable price.

The Council of Mortgage Lenders (CML) announced earlier this year that a first time buyer needs a £34,000 deposit, on average, to secure their first home. This is more than the average first time buyer earns in a year and is treble the deposit figure needed three years ago. The CML also reported that 80% of first time buyers look to the ‘bank of mum and dad’ to help them secure the funding for a property.

With this in mind many corporate sellers (home builders and financial institutions) sell their properties with added incentives. These include 95% mortgages*, money towards deposits and stamp duty paid. First time buyers, or their parents, may then have the deposit and finance required to get the former onto the property ladder.

Robin King, Move with Us Director, commented: “We recognise that first time buyers are one of the main driving forces behind the UK property market and to continue the path of recovery we need to enable this group to make their first home purchases. The incentives attached to our properties, including stamp duty paid and money towards deposits, give first time buyers the helping hand they need. We will continue to do all we can to give first time buyers an opportunity to buy property.”

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