Submit property

95% mortgage but does it help you to sell your property fast

As was widely reported yesterday the UK economy has now officially dipped into recession once again. We have now had two consecutive quarters of negative growth, however many Brits don’t seem too alarmed.

The truth of the matter is the dramatic fall in the markets and the times when banks were going bust left, right and centre are over. No one can envision that happening again. When looking at the actual situation it seems apparent that we are just bouncing up and down off the bottom. Also, it should be mentioned that that recent rise in house prices in London is certainly a much awaited green shoot.

What’s this got to do with selling my home fast?

Well, the fact that people aren’t panicking because of  a double dip recession is good news. Buyers who are currently shopping for houses will probably continue to do so, but still there is a major underlying reason for why there arent too many property buyers. The mortgage lenders are still limiting their availability. In fact, the government has poured billions into the banks to free up their credit crunch, however this has simply paid off huge old debts and hasn’t been passed to the consumer. Until the banks open their doors we will still be experiencing a lack of buyers.

95% mortgage for first time buyers

A new government scheme is offering a 95% LTV mortgage for first time home buyers. Obviously they appreciate that first time buyers need a leg up the housing ladder. What they also appreciate is that the country needs to build new houses and these new homes need to be sold. So, the deal is first time buyers can attain a 95% mortgage but only on a new built home, those participating are the likes of Bellway, Persimmon, Taylor Wimpy… In fact, all the major house builders because they wil benefit as well. The government will lend the buyers an equity loan which makes up the remainder of the deposit, it has no interest but the government will benefit in the rise in value of that equity share when the house is eventually sold.

A winning situation for everyone. First time buyers get on the property ladder, house builders sell their homes and the government get to make investments in property.

So, who looses out? Answer: the existing home seller

If the first time buyers are attracted to buying new builds then unfortunately there are less buyers available for existing home sellers, technically reducing movement in the market. At the same time the government may see this as another benefit, rumour has it that they would prefer to suppress property prices than to have another boom.

“YouSellQuick gave me a very good deal and helped me through the whole process.”

— D. Halls London, England

“I got exactly what they offered in my bank account, nothing less, no extra fees or commissions.”

— R. Gray Colchester, England