It is perfectly natural that vendors will focus on their own needs and requirements when selling their home. Selling a home can be extremely stressful and if you are looking to achieve success, you need to know what is right for you, However, for vendors to sell, there must be willing buyers in the market, and this means anything which increases the number of willing buyers should be seen as positive news for vendors.
One issue that prevents buyers from getting into the market is the difficulty in obtaining a mortgage. The sums of money that buyers, particularly first-time buyers, need to find to pay for their deposit is huge. Understandably, many first-time buyers struggle to raise the appropriate funds, which is why the introduction of more 100% mortgage options is brilliant news for first-time buyers, but it can also be welcome news for vendors.
Lloyds is recognised as the largest lender in the country and they have announced plans to offer 100% mortgages to first-time buyers. It will not surprise you to learn there are some terms and conditions associated with these mortgages, but it is an option that many buyers will consider.
Lloyds are willing to offer first-time buyers the chance to borrow up to £500,000 with no deposit. However, in order to be eligible for this mortgage, the borrower requires assistance from a family member. The family member will have to place a sum of money akin to 10% of the property value into a savings account with Lloyds.
Understandably, this isn’t an offer that every first-time buyer will be able to take advantage of. Many first-time buyers struggle to get support and a sum of this money is not reasonable for many loved ones, no matter how much they want to help people they care about step on to the property ladder. However, the buyers who are in a position to take advantage of this scheme will find it of benefit and it could lead to more people entering the market with an intention to buy.
Vim Maru is the Group Director of Lloyds Banking Group and he said; “We are committed to lending £30bn to first-time buyers by 2020 as part of our pledge to help people and communities across Britain prosper – and ‘Lend a Hand’ is one of the ways we will do this. At the heart of this market-leading product is helping to address the biggest challenge first-time buyers face getting on to the property ladder while rewarding loyal customers in a low-rate environment.”
If you are a vendor looking for guidance and support in the property market, come to Stevens and Co. We are pleased to say we have helped many Ashford vendors make a move in the market and we can help you connect with willing buyers. Selling your home is a challenging process but with our support, you will find that you can compete in the market and hopefully sell your home quickly and for a great price.