Boost for first time buyers of London property
- 7th September 2011
- Buying Property News
100% mortgages return for new buyers and mortgage approvals rise to a 14-month high.
Last week, new lender Aldermore unveiled its new 100% mortgage for customers, offering a big boost to first-time buyers.
100% mortgages became all but extinct following the credit crisis and remain relatively rare.
Stephen Ludlow, Chairman of ludlowthompson, comments: “The return of the 100% mortgage offers is good news first time buyers who have struggled to get on the property ladder for some time. Provided they can find a guarantor, this new mortgage could be a great way for many of London’s prospective homeowners to get a foot on the property ladder.”
This comes amid news from the Bank of England that mortgage lending is on the up with 49,239 mortgage approvals in July, up from the six-month average of 46,822 and 48,500 in June.
Properties are also becoming more affordable in some parts of the country with mortgage lender Nationwide also reporting that house prices fell in August for the first time since April.
The average price of a house fell 0.6% month-on-month in August to £165,914, Nationwide said, which is 0.4% lower than a year ago. Prices had increased by 0.3% in July.
Stephen Ludlow adds: “With more mortgages being approved and house prices softening slightly, it’s as good a moment as ever to buy a London property.”
The 5 most attractive properties available at ludlowthompson:
2 bedroom, complex apartment, Seagull Lane, Docklands, E16 - £150,000
2 bedroom, purpose built apartment, Friary Estate, Peckham, SE15 - £150,000
3 bedroom, conversion maisonette, Devon Close, Tottenham, N17 - £178,000
2 bedroom, complex apartment, Johns Place, Whitechapel, E1, £215,000
2 bedroom, purpose built apartment, Caldwell Street, SW9 - £219,950
Top tips to secure your ideal property:
- Be organised and prepared. Have a checklist of ‘must haves’ and ‘deal-breakers’ and tell the agent about them.
- But be realistic – too many ‘must-haves’ will rule you out of the majority of properties available.
- Know your budget and stick to it. Communicate your budget to your agent to avoid wasting time on properties out of your range.
- Shop around for a mortgage as early as possible. Compare interest rates and fees. A low interest rate might be made up for with a higher fee structure.
- Save for a deposit, unless of course you are opting for a 100% mortgage. Saving enough for at least a 5% deposit will make a difference in the long term by making your monthly payments smaller. You will also need savings to cover surveyancing and removal costs.
- Be committed. You will stand the best chance of securing the property if your agent sees you as one of their top prospective buyer
With more mortgages being approved and house prices softening slightly buying in London now makes sense.
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