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If you are a first time buyer you may well be having problems getting on the property ladder. Buying a first home and stepping on to the property ladder has become quite tough! House prices for many struggling to get on the property ladder, have all but soared out of reach.
Here we take a look at why getting on the Property Ladder has become so much more difficult in recent times, and provide help, information, tips and advice on how to get on the property ladder, along with details of how we can help with mortgage funding for first time buyers looking to get a foothold on the property ladder!
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So what is the Property Ladder exactly? As well as being a very popular and entertaining Channel 4 Television Series, 'The Property Ladder' is also the term or expression used to describe those people who own their home, ie if you own your own home, you are said to be on the property ladder, or the housing ladder.
However, the phrase is more commonly used and referred to when describing those people who are looking to buy their first home. If you are one of those people, you could be said to be someone 'looking to get on the Property Ladder' and as such you probably should read this page, it might prove to be very useful for you!
In recent times its become increasingly more difficult to get a foothold on the first rung of the property ladder. Buying a first home has become a difficult task. House prices for many looking at getting on the property ladder have all but soared out of reach, and there appears to be nothing on the horizon that will see a reverse to this trend at any point in the near future.
The continued boom in house prices across the United Kingdom has meant the number of first time home buyers has been in decline since 2005. This has been due in part to the traditional income multipliers of 3 to 3.5 times salary not meeting the required mortgage funding.
As a result, some mortgage lenders have started to address the appropriateness of relying on income multipliers alone when considering lending to borrowers. Accordingly, the mortgage industry has started to introduce the concept of "affordability" when approving mortgage applications.
Somewhat controversially, certain progressive lenders have made headlines because they have been in a position to advance mortgage funds of five, six and even seven times salary. However, these lenders have defended their stance due to the fact that they now consider the traditional income multipliers to be outdated, and that their "affordability" criteria is more accurate and appropriate.
The lenders stress that salary equivalent multiples of up to six or seven times, will not be available to all borrowers. Each case is viewed and mortgage funding assessed and calculated on an individual basis, and that higher lending remains within the doctrine of responsible lending, as well as the FSA's Treating Customers Fairly (TCF) initiative.
The sophisticated credit investigatory techniques and assessments available to lenders nowadays, enables them to assist more borrowers to climb onto the property ladder or climb up a rung. Nevertheless, larger multipliers are generally restricted to low-risk, dual income couples, with little or no debt, and no dependants.
So, what are the alternatives to higher income multiples for first time buyers who are looking at getting on the property ladder? Well, some of the alternatives include:
Yes, we can certainly try!
All our mortgage advisors are CeMAP qualified, and are available to discuss the options open to you every day up to 10.00pm, including weekends on Freephone 08000 282 281, alternatively you may like to enquire online, it's easy and it's quick to complete.
We are sure that you will find our service to be friendly, professional, helpful and unstuffy, so please don't hesitate to Contact Us if you would like to discuss your requirements, naturally without obligation! We'll carefully assess your circumstances, needs, requirements and aspirations and come up with the most appropriate solution for you. We'll be delighted to provide you with an in-principle decision, whatever your circumstances. So get in touch today, you'll be glad you did!
Hopefully we've been able to shed some light on why getting on the property ladder has become so difficult in recent times, and have provided some insight as to the alternatives of how to get on the property ladder. Remember, you'll find heaps more mortgage related information throughout our site, and if you think we can be of assistance, don't forget we're just a free phone call or couple of mouse clicks away and would love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
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