For many buyers, the hardest aspect of buying property is saving for the deposit. This is why the 95% mortgage guarantee scheme, which is now in effect, will be of benefit and interest to many prospective buyers.
At Williams of Petersfield, we work closely with many people in the local area. We know there is considerable demand for property right now, and we can help.
The criteria of the scheme is based on:
- Buyers can purchase property valued up to £600,000 with a 5% deposit
- The scheme is open to first-time buyers, and existing homeowners
- The scheme is not limited to new-build property, it can be used on all manner of property
- The scheme aims to help buyers by incentivising lenders to provide more affordable mortgages to more buyers
Can buyers in Petersfield benefit from the mortgage guarantee scheme?
With the £600,000 threshold in mind, it is helpful to be reminded of the average price of property in Petersfield.
According to Rightmove, as of the end of April 2021, the Petersfield housing market can be described as follows:
“Properties in Petersfield had an overall average price of £463,407 over the last year.
The majority of sales in Petersfield during the last year were detached properties, selling for an average price of £660,352. Terraced properties sold for an average of £358,202, with semi-detached properties fetching £458,345.
Overall, sold prices in Petersfield over the last year were 5% up on the previous year and 6% up on the 2018 peak of £436,809.”
As can be seen, the average price of detached properties, the most commonly sold property type in Petersfield, is above the threshold, but the average price of all properties is below. So, if you are looking to buy a home in Petersfield, and you require assistance in saving for the deposit, help is likely to be available.
Robert Jenrick, Housing Secretary, comments: “For too many people, no matter how hard they work, homeownership can seem out of reach. One of the biggest divides in our country has been between those who can afford their own home and those who cannot. That’s why we are determined to do everything we can to help hard-working families and prospective first-time buyers get their feet on the housing ladder in an easy and affordable way, to level up this country. The new mortgage guarantee scheme which comes into effect today will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.”
This measure should help buyers
Tim Bannister, Rightmove’s director of property data, says: “The new mortgage scheme could help some first-time buyers bring their plans forward if they have a lower deposit but are still able to pass the affordability checks, and will be welcomed by those who last year we’re struggling to come up with a 15 or 20% deposit. Although the number of new properties coming to the market is improving, it’s still nowhere near enough to satisfy the buyer demand that is already at record levels, and so more people choosing to trade up will be vital to open up more choice at the start of the property ladder.”
Tim Bannister also said; “The combination of not enough stock and high demand will help underpin prices, and over the past five years asking prices of a typical first-time buyer home have already increased by £23,000 on average, so those who can now afford to buy a home will be trying to make the move quickly in case prices rise further.”
At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.