As first-time buyers face difficulties entering the property market our specialist first charge mortgages may provide a solution for cases with different sources of income.
According to research provided by Santander Mortgages a national survey of 5,002 first time buyers aged between 18-40 found 9 in 10 still want to get on the property ladder. However, shocking figures show that by 2026 just 1 in 4 under 34s will achieve that goal. Owning their own home is one of the priority goals set by many but 70% of potential first-time buyers believe this goal is unobtainable.
The study shows the sharpest fall in first time buyer homeownership has been among those on middle-incomes (£20K – £30K). The main barrier is due to the ability to raise a deposit and obtaining a mortgage based on their income. As house price inflation is outstripping wage inflation the average age of a first-time buyer has increased from 25 to 33 years old. House prices are not only locking out first time buyers, but people above the age of 50 are turning to a house share as a viable living arrangement. This can take form as a live-in landlord or as a roommate.
Recent data published identified house prices rose by 1.7% in UK cities for June according to Hometrack. However, prices in London have remained flat and seven cities recorded growth under 1%. Edinburgh saw house prices increase by 5.1% and Liverpool by 4.9%. Properties for sale in Sheffield under the post code S7 are the most profitable homes for sellers who on average gain 104.09% of the average asking price £295,862. Dartford properties are the second best with sellers gaining 102.67% of the average asking price of £300,448.
City living is desirable and there are property hotspots which are more stable than other areas of the market. However, there is a different picture painted for Southern Cities which are running at their lowest level recorded since January 2012. Underlying market conditions remain stronger in the north where supply and demand are more in balance.
At Smart Money we recognise the difficulties first-time buyers face and we can offer specialist first charge mortgages. Our specialist first charge residential mortgages are not what you find on the High Street. We can lend on higher income multiples from 6x income including considering all sources of income from rent, second jobs, bonuses, overtime, part-time, self-employed and zero-hour contracts. For clients you may be struggling to place mainstream, our lenders will assess each application on its own merits with facilities offering up to 80% LTV. Unlike mainstream lenders our Specialist First Charge Mortgages are designed with people in mind.