June 19th, 2008
Low Interest Loans Not Easy For First Time Buyers
Although property values are enticing many people to become first time home buyers, most are finding it impossible to get a low interest loan. The issue is getting increasingly worse and many wonder just how long it will be before low interest loans come back. Right now, more banks across the UK announced this week that they would not be offering low interest loans and it appears as though many others will be following their lead.
Katie Tucker of John Charcol stated: “Although the expansion of the scheme will allow more first-time buyers to buy a share of a property without a deposit, the Homebuy schemeÕs administration has not been known for its speedy service.”
“It is possible to negotiate discounts of up to 20% on the asking price if you are a bulk buyer of new-build flats,” says Ray Boulger of John Charcol. But will that be enough to make these properties attractive to housing associations? There are whole blocks of new flats boarded up, for example in Thamesmead in south-east London. It would make sense for a housing association to buy them, refurbish if necessary and rent them out or offer shared equity deals.”
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