There is still a lot of demand out there to purchase a property. It’s the grass roots of the housing market, the notorious first time buyer. Where would the market be with out them every one once said?. Now we know a market thats dried up.   

This week the Royal Institution of Chartered Surveyors (RICS) report’s December sales they are not expected to show any improvement. RICS measures activity from Estate Agencies.

Ever since the credit crunch took hold the securitisation market has dried up, banks are going back to traditional banking, this means using money from depositors to fund their mortgage lending. Now some would say that this is the sensible option, but there just isn’t enough money to fund every ones lending requirements.

To help get the mortgage market moving again the government will probably look at implementing the Crosby report, by the former HBOS chief executive Sir James Crosby.

 He envisaged that the government would auction mortgage guarantees to the highest bidder and charge a fee to the eventual winner, on the condition that they would provide home loans to first-time buyers and not to remortgaging customers.

RICS chief economist Simon Rubinsohn said: “With many first time-time buyers unable to find the finance to take an initial step onto the housing ladder and existing owner-occupiers needing to move similarly blighted, the time has come for the Government to take direct action to restore an orderly property market.

“As a first step in this process, RICS believes that the recommendation of Sir James Crosby to provide guarantees for the new issuance of residential mortgage backed securities should be adopted as soon as possible.

If you want to know more about first time buyer schemes, then contact Click n go Mortgages here.

Shared equity schemes seem to be the perfect way for developers and the goverment to get the hosing market moving again.

Struglling developers all over the country have mothballed developments, with millions of pounds of working capital tied up in empty properties. The government recently announced the purchase of 379 homes from Bovis for £18M. This works out at £47,500 per home a good deal for Communities and Local Government.

Bovis said its sales figures are ‘in line with expectations’. The house builder completed 1,817 homes during 2008, down 38 per cent from the 2007 total of 2,930. Private completions were down 47 per cent to 1,223.Social housing made up 33 per cent of sales, up from 22 per cent in 2007, and Bovis agreed ‘a number of deals’ with the Homes and Communities Agency to sell unsold stock to housing associations.

If more builders took the same initiative to off load housing stock at a discounted price that still made them a profit and strengthened their balance sheets maybe more Shared Ownership & Shared Equity properties would be available sooner rather then later.  If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

With all the doom and gloom over housing market, you might be surprised to know that this is a fantastic time to buy a house via a Shared Ownership & Shared Equity scheme. Even if you have bad credit. You can get a great mortgage deal with the following lenders……Let’s look at a few high street lenders and an adverse (bad credit) lender that have shared ownership mortgage and shared equity mortgage deals available in today’s market.

Abbey are very selective in which developers they have on there approved panel. There rates and fees are similar to the two below, but if your developer is not on the panel then you have no option but to try another lender.

Nationwide accept every developer. They also allow brokers to reserve the rates immediately. Now that may not sound like a big deal but in todays fast pace ever changing mortgage market that is crucial. There tracker rates for shared ownership and shared equity mortgages are competitive, if you are prepared to take a risk on an ever fluctuating Bank of England base rate.  Halifax this is the lender that likes to say yes, they have some of the most competitive mortgage products available. Each application is assessed on an individual basis, this formed around property type and location, employment and ongoing commitments and credit history.

You still need to put a minimum 10% deposit down dependent on credit score for shared ownership purchases. For shared equity mortgages you can secure a 100% mortgage for your share.

100% Bad credit mortgage lender but ONLY for Shared Ownership purchases. Yes there is still one out there but no widely know to the public. They assess each and every case based on its individual merits. It’s based around affordability and your ability to pay the mortgage. The main criteria is base upon your ability to maintain the loan, if your gross income is over £25,ooo 50% of your net monthly income is calculated towards your monthly mortgage payment and rental commitment reducing to 45% for income that are less than £25,000. This shared ownership mortgage product is a LIBOR rated tracker product. Currently you must not have any more than three de-merits (County Court Judgments, Defaults, and Late payments).

If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.