house buyers – Tough Times For First Time House Buyers In The UK

The tough times for first time buyers in the UK housing market look set to continue. The subprime mortgage crisis in the US has caused banks financial hardships, and with the global reach of many High Street names it was surely only a matter of time before the financial uncertainty in the US spread to the UK.

Average house prices in the UK have now risen to around GBP160,000. This means a couple buying their first home would need a deposit of at least GBP8,000 and a combined yearly income of GBP50,000. Of course, this assumes that they can still get a mortgage with a relatively high loan to value (LTV) rate of 95%.

Despite recent cuts to the base interest rate by the Bank of England, many mortgage providers are failing to pass these cuts on to consumers. In a move born from greed, mortgage providers are keen to protect their profit margins at the expense of first time buyers, looking to get a foot on the property ladder.

Equally, with so many established home owners able to use the equity from record breaking house price rises in the last few years, it is becoming more and more difficult for first time buyers to find competitive mortgages. The high LTV first time buyers require also weighs heavily against them when compared against the equity heavy home owners who are moving properties.

In the face of the deepening subprime crisis, and facing significant profit cuts or even losses, mortgage lenders are now tightening their lending criteria. The fear is that the 95% LTV mortgages days are numbered, as lenders push for larger deposits and smaller LTVs. On top of this lenders are weighting interest rates to discourage borrowers from taking up high LTV mortgages, forcing buyers to come up with much higher deposits.

The increasing cost of University education is also taking it’s toll. With UK students leaving University with an average of GBP13,000 of debt, it is taking longer for buyers to save up their deposits. Student loans are no longer the sole source of debt for students, with reckless lending by banks and a number of credit cards aimed at students all increasing the burden of debt for many young people.

Juggling their existing debts while struggling to qualify for lenders’ increasingly harsh mortgage qualification criteria is making mortgages for first time buyers tougher than ever. With a gloomy financial outlook, both for the UK and globally, this trend looks set to continue for some time.

Tax Credit First Time Home Buyers Tips presented by Colorado Realtor Michael Harper. Up to 00. michael-harper.com Did you know that anyone can qualify for this tax credit as long as you have not owned in the last 3 years? This opportunity will expire Dec. 1, 2009! Watch this video for other helpful tips and then let’s talk to see how we can best apply the tax credit to your situation. You can even use the tax credit of up to 00 for your closing costs. Watch the entire video for more valuable information regarding this great program to help you buy a home. Call me at 719-687-1715 or email me at Michael@Michael-Harper.com – I’m happy to answer any of your questions about your Real Estate needs. You can also add a comment or ask a question right here on YouTube or watch some of my other videos. I look forward to talking with you, Michael Harper, Realtor michael-harper.com

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house buyers – 1 In 5 House Buyers Are First Time Buyers

According to the mortgage broker, John Charcol, just over 20% of purchasers using their services in April 2009 were first time buyers.

Lenders are beginning to lower their requirements for first time buyers. HSBC are now beginning to require only a 10% deposit for first time buyers and since just last week, Lloyds are offering 95% mortgages (ties attached).

There are also a number of government backed schemes offering shared ownership schemes, very low interest loans for people earning less than £60,000, key workers or council tenants, and plenty more initiatives to help first time buyers. Be aware of what is on offer and make the most of them!

Plus of course house prices have fallen since last year by around 15% and are thought to be nearly stabilising at the bottom of the trough. Although they are expected still to fall they are not expected to fall much further.

And interest rates are the lowest they have ever been. Fixed deals are attractive and the monthly mortgage repayments are a lot cheaper than it was just a couple of years ago. They are likely to be cheaper than rental payments and take much less of your monthly income.

It’s a good time to buy. There is not much supply on the market with would-be sellers keeping out of the market, or renting out their properties, but if you can find the property you want then go for it. There will after all be some new properties coming onto the market from probate, divorce or job relations. And remember that sellers want a first time buyer – no chain and therefore the transaction should be straight forward.

The economy is in recession and unemployment is expected to continue to rise this year, possibly by another one million according to leading economist, David Blanchflower. With this, housing activity is expected to remain subdued for the rest of the year. If you want to buy a place, and you find what you want then go ahead – make the most of the low interest rates and low prices.

But if you do not find what you want don’t feel you have to rush to get something. Any housing price increases will be slow – the economy needs to recover and unemployment needs to be falling which won’t be happening until next year at the earliest. And as that happens more houses will come onto the market making it easier for you to find what you are looking for.

Keep a keen look out and good luck.

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how do i sell my house – How to Sell Your House Fast to a Profesional Home Buyer Safely (First in a Series)

If the current chaos in housing and the economy all of a sudden has you seeing little yellow signs and big billboards that say, “We Will Buy Your House” you probably need to sell a house fast and may be wondering who are these guys behind the signs and can they really do anything to help.

The signs have been around for probably three decades, but like everything else, you only see the things that are of immediate importance to you.  While anyone can buy and sell houses in the United States most people only buy and sell the house they live in or expect to live in.

Buying houses without the expectation of living in them—as a business, really started to take off about 30 years ago when a number of seminar speakers crossed the county selling training in buying and selling homes for profit.

Like any business, you can expect a number of the people who buy houses to be skilled, honest professionals and others not so skilled and some—that you would want to avoid.

So the first thing I would suggest in selecting a House Buyer to deal with is call several, see who answers the phone, and see who comes out to your house and arrives when they agreed to arrive.  Not high tech, but a good start.

Who am I to tell you how to sort through these guys?  I happen to be one of them and have been doing creative real estate for two decades in Florida, was previously a stock broker and financial reporter for the Chicago Tribune.  It is sort of like going to a hacker to find out how to make your computer operation safe.

And as one of them, let me assure you there are good, competent people, who are able to raise the money it takes to buy and are knowledgeable of the way real estate works where you live.

There are also, and always, waves of new people who are learning how to buy houses and some of the people who need to sell a house fast will be helping these newcomers learn the trade.

In addition to seeing if they answer the phone and actually arrive at the time agreed for an appointment, I would want to know how long the person has been buying houses and how well they do it.  In the second installment of this series, we will look at methods of checking them out and in the third article we will be looking at phrases in the contract they offer you that you may want to avoid.

One of the biggest plusses that the best of these guys and gals will bring to the table to help you is that they have been taught that there are a number of ways to sell a house, methods that have been used in commercial real estate for years but that are rarely used in residential real estate.

I learned the use of these creative methods the hard way twenty some years ago when I lived on the East Coast of Florida and unbeknownst to me had bought a house in an area where a garbage burning incinerator was planned.  It was to be built about a mile from where my house was and when I was ready to sell the house to move to the Tampa Bay area, I could not sell.

Everyone knew of the plans when I was ready to sell and no one wanted any of the houses in my area.  I finally left the house with a real estate agent and moved while bearing the cost of two homes.

While a lot of real estate agents do not like creative real estate, my agent was knowledgeable and suggested a way to sell my house.  We were scarred, but after thinking about it we sold and it worked out fine.

There was a risk in what I did then and a risk in any creative answer to a real estate sales problem, but my experience was what  eventually sent me into the We Buy Houses business and in the next several articles we will tell you how it may help you and discuss the risks.

house buyers – Average Age of First Time UK House Buyer Reaches 34

It is often said that the first time buyer is the lifeblood of the housing market. They buy the houses at the bottom of the housing ladder, allowing previous owners to buy at the next level up and so on. Without first time buyers, the housing market would slow down dramatically – a process which according to many commentators is starting to happen. In fact, figures quoted by Rightmove suggest that during August, the average house price in London actually fell by 0.1%, and the rest of the UK saw growth of only 0.6% – the fourth month in a row that house prices have increased by less than 1%. In theory, this could mean a light at the end of the tunnel for the first time buyer as at this rate, it won’t be too long before house price increases are aligned to the average salary increase of 3-4%. However, it’s not all great news for first timers as this still means that the average house price in the UK is running at over £240,000. It might take a sustained period of rime before those that have re-mortgaged are willing to sell at prices that first time buyers can afford to kick start the market again.

What does this mean to the first time buyer then? The great housing market boom may have slowed down, but the average Joe on the average salary still can’t afford to buy the average house unless he has a huge deposit.

One statistic that parents and young adults alike might find mind-blowing is that the average age of the first time buyer in the UK has increased from 27 to 34 in the last 30 years (according to the GE Money Home Lending and Customer Research Organisation). The research also shows that the number of first time buyers buying with a spouse has decreased from 80% in 1977 to just a third today. This means that the prospect of leaving home and moving into that ‘party pad’ remains a dream for many.

With so many people getting well into their careers before buying their first place, there are more and more people either choosing or being forced to live in house shares throughout their early working lives. In fact for many graduates, who are in often also burdened by student loans the reality is that they will still be living in student house shares well into their thirties!

For more information on house sharing, or to find housemates, visit abodewithme.com.

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house buyers – Mortgage Interest Tax Relief For First Time House Buyers

First time house buyers can claim tax relief on their house mortgage interest repayments for the first seven years of their mortgage term.

The tax relief available is provided on a reducing scale. For the first two years of their mortgage repayments, first time buyers can claim tax relief of 25 percent per year.

For the next three years, that is the third, fourth and fifth years of the mortgage, first time buyers are entitled to tax relief at a rate of 22.5 percent per year.

In the final two years of the seven year period, first time buyers are allowed a rate of 20 percent a year.

In January 2009, the amount of interest that is allowed on a mortgage was increased to 20,000 euro for a married couple and 16,000 euro for a single person.

Non first time buyers are allowed tax relief on mortgage interest repayments at a rate of 15 percent per year. This relief period also ends after seven years.

Home mortgage tax relief is given at source (TRS), Mortgage interest relief is given, by your lender, either in the form of a reduced mortgage payment or a credit to your funding account.

A qualifying loan for the purpose of mortgage tax relief is a secured loan, used to purchase, repair, develop or improve your sole or main residence. Mortgage tax relief can also be claimed in respect of the interest charged or paid on main residences or respect of mortgages paid for separated/divorced spouses, and dependent relatives for whom a dependent relative tax credit is being claimed.

Switching to a new mortgage lender or a different mortgage type to achieve a better interest rate is not treated as a new loan by the Revenue. However, moving home and taking out a new mortgage for this home with a new or existing lender is eligible for relief for 7 years from the date of first payment on the new home loan.

As a first-time buyer, it is important to be aware of the fact that a mortgage loan comes with a variety of associated charges and costs. Although currently first time buyers do not have to pay stamp duty, other charges involved include legal fees, buildings insurance, removal costs, land registry fees, lender’s valuation costs and survey fees.

There are two things to bear in mind when applying for a mortgage: what is the percentage of the house value you can receive as a mortgage, possibly up to 92 percent, and what earnings limit will the lender impose, a typical example being three and a half times your salary.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.