Haven’t the past few months been rather peculiar? For the property sector as a whole, it’s been a super busy time, with people looking to buy and sell properties more than ever before.
Here in Southend it’s been particularly busy, with many people looking to downsize and upsize, people wanting more space or garden because they’re spending more time at home, and lots of first-time buyers wanting to get on the property ladder.
Now, is a good time for those wanting to bag a property to call their home. so we thought we would go through one or two things you need to consider if as a first-time buyer, you are looking to buy when lockdown ends.
This is just an overview of our thoughts, based on our experience and knowledge, but if you would like more personal advice, we can help you steer through the waters! Email us on barry@bmpropertyagents.co.uk or call 01702 596027 to arrange a chat.
Is now a good time to get on the property ladder?
Yes. It sounds simple but we believe it is a good time to get on the property ladder as a first time buyer. Why? Because the market is so buoyant, you are likely to find somewhere you would like to live.
Property prices have been spiking recently, and many commentators believe this isn’t sustainable, so what this means for you is that prices are likely to level out.
The Government is helping you to buy
A new Government initiative that allows people to buy a new home with only a small deposit is available.
It’s often a criticism that it’s tough for young people to get on the property ladder because they need a huge deposit. Particularly with the COVID pandemic, mortgage lenders have been even more risk averse, and the number of products available has shrunk.
The Government seems to have identified this as an issue and so, a mortgage guarantee scheme has been introduced which it is hoped will give lenders confidence. It basically means lenders can provide mortgages to those who have just a five per cent deposit for properties up to £600,000. While not just for first-time buyers, it is a super option which should benefit you.
And there’s more from the Government
As well as the scheme we have just outlined, the Government launched its new Help To Buy: Equity Loan Scheme, which is directly for first-time buyers just like you.
There are limits, based on regional property prices, but it runs until March 2023.
This scheme, outlined on the www.ownyourhome.gov.uk website, sees the Government lending “homebuyers up to 20% of the cost of a newly built home, and up to 40% in London”.
Note that this is for new build homes. It’s a way of giving the property market a boost – and it could help you.
Have you considered…
So, we know that there is support and the market is there. But, let’s turn this around and talk about you. Lockdowns have made many people reassess how and why they do things. Many people are working from home more than ever before.
So, think seriously about your priorities.
- What sort of home would you like?
- What location?
- Do you need space for an office?
- Do you need more inside or outside space?
- If you need more garden, can you compromise on location?
Most importantly: Do you have a deposit?
This is an issue as old as the hills, but do you have a deposit? Do you have money saved up, or do you have someone willing to loan you some? Remember, this sort of thing needs to be declared in the paperwork.
If you are thinking of moving after lockdown ends, then you’ll need to have finances either in place, or a mortgage arranged. Mortgage meetings can all be completed online these days, so it is easier to talk with lenders.
Viewings and changes
Note that COVID rules mean that there have been changes to how people view properties. No more than two people are allowed in a property to view, masks must be worn, and you shouldn’t touch items. It’s a different way of doing things but it’s about keeping people safe. We have these rules in place and the safety of you and our staff is paramount.
Of course, we know a thing or two about the property sector in Southend, so we are more than happy to help you, just as we have helped hundreds of first-time buyers.
BM Property Agents are your local property experts for the Southend area. Call us on 01702 596027 or email barry@bmpropertyagents.co.uk to chat with a member of our friendly and experienced team.
