Mortgage blog: Time is of the essence for first-time buyers

Date:

Tuesday 7th February 2012

The Government's concession for first-time buyers to avoid paying Stamp Duty when purchasing properties under £250,000 is due to expire at the end of March this year. This incentive could potentially save them a considerable about of money and offer a helping hand when trying to secure mortgages to get on to the property ladder for the first time.

Mortgage blog imagePaul Smee, the Council of Mortgage Lenders (CML) director general, says: "Despite the fall in lending in October, it is possible that we will see signs of increased activity by first-time buyers in the early months of [2012], as we approach the end of the Government's Stamp Duty concession."

It is more difficult than ever for those renting to be able to afford to save a deposit sufficient enough to purchase, with first-time buyers' mortgage deposit requirements remaining stable in recent months at an average of 20%. Once a deposit is saved however, buying your own home is on average £100 per month cheaper than renting.

Typically, monthly interest payments have continued to fall for first-time buyers and now only 12.3% of income is used to service the interest on a mortgage - the lowest level since January 2004, according to the CML.

So, with the months flying past, will first-time buyers have the time or money to saturate the marketplace and take advantage of this incentive?

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