The recurring theme in the weekend’s financial press was, of course, last week’s Budget announcement. The pros and cons of the Government’s new Help to Buy ISA featured heavily, with the Guardian and Times fleshing out some more detail, while the Telegraph looked at cash ISA’s as a comparison for those wishing to invest larger lump sums. Many welcomed the introduction of a product designed to help First Time Buyers save for their deposit, but the Independent also reported on concerns expressed by industry experts – largely that the potential increase in demand for property will not be met by an increase in supply.
The Sunday Express highlighted the ability for parents to help their children onto the property ladder by contributing towards the £200/month investment allowed under the Help to Buy ISA. The launch is set for Autumn, and estimations suggest it will take 4-5 years to save up the maximum amount set out under the scheme. As a result, some may want to consider the other options available, including a return to the Bank of Mum and Dad. The Help to Buy scheme itself is still available, and brokers reported that the initiative has encouraged lenders to offer much better deals at 95% Loan-to-Value.
Elsewhere, the Financial Times looked at the rise in popularity of smaller lenders as they seek to win business by offering a more flexible approach to underwriting. This is particularly useful as a time when there are an increasing number of borrowers who are finding it hard to secure a deal with a high street bank – such as the self-employed, older borrowers, and homeowners with interest only mortgages.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE