With Brexit on everyone’s mind and not long to go until March 29th, no one knows what the outcome will be and how this will affect the property market.
At Seths we work closely with many mortgage advisors and have found out that Lloyds who is one of Britain’s biggest lenders, is to offer 100% mortgages to first-time buyers, something that we haven’t seen for a long time ! The new mortgage offer from Lloyds, means that first-time buyers, can borrow up to £500,000.00 without a deposit, moving away from mainstream lenders who required a minimum deposit of 5%.
Lloyds have committed an astonishing £30bn to help first-time buyers and since the average deposit for most buyers outside London has climbed to £33,211.00 and a staggering £110,182.00 for London, this is news that first-time buyers are welcoming with open arms.
However, with many good deals that are good to be true, there is always a catch and there is a small one here. The deal requires that a family member puts a sum equal to 10% of the value of the property into a Lloyds savings account, where the account will pay an interest rate of 2.5% on the money deposited.
Essentially with the help of the ‘Bank of Mum and Dad’, first-time buyers are able to purchase their first property with ease, subject to the lending criteria and conditions set by the lender.
That being said, Lloyds must essentially see a long term return of the housing market, regardless of the outcome of Brexit and how the property market may behave in the short term after March 29th.
At Seths, the property market is busy and with our *** FREE SOLICITORS FEES OFFER *** we are certainly busy. With the property market in Leicester busier than ever, with many developments taking place and with property prices climbing, should Brexit make you stop selling? We certainly don’t think so, especially with waiting buyers.
Thanks for reading !
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