House price rises and how long to fix a mortgage: Q&A for first-time buyers msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Even Government-backed schemes can come with serious complications
The housing market is booming and the Government has taken massive steps to encourage home ownership. But is now the right time to buy?
The entry-level market is concentrated heavily in flats, a sector which is grappling with successive scandals over leasehold ownership and building safety. Government schemes such as Help to Buy and shared ownership come with big complications, while low deposit borrowing brings added risks of negative equity.
Here, we take a look at the common traps first-time buyers need to be aware of this year – and what you can do to avoid them.
Mortgage hope is on the horizon … unless you want to buy a flat theguardian.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theguardian.com Daily Mail and Mail on Sunday newspapers.
From 15 March, first-time buyers, homemovers and remortgagors in England and Wales will have access to mortgage products with terms up to 40 years with Habito.
Martin Stewart, director of The Money Group, said: “It is an interesting move by Habito and while there is a need for innovation within the industry to address changing demographics, I will need a bit of convincing to say this product is it.”
Stewart went on to outline that Gordon Brown tried to change the culture of shorter term fixed rates and that failed to gain traction.
He said: “I personally have arranged only one 10-year fixed rate in the past five years, so where the demand is coming from for this type of product is not immediately clear to me.”