Thursday, August 12, 2010
Category:
Home Improvements
According to the latest figures released by the Council of Mortgage Lenders, there was a 20 percent increase in approvals for first time buyer mortgages in June.
Research conducted by Moneyfacts has revealed that the current average two year fixed rate for first time buyers with a 10 percent deposit has fallen from 6.48 percent in January of this year to 6.15 percent. Furthermore, the average two year fixed rate for first time buyers with a 25 percent deposit has dropped from 4.37 percent to 4.11 percent over the course of the last six months.
Spokesperson for Moneyfacts.co.uk, Louise Holmes, commented: "Potential borrowers dreaming of owning their first home will have been pleased with recent reports suggesting a fall in house prices.
"Mortgage lenders, however, see house prices continuingly falling as a threat and usually review their credit criteria by increasing deposit requirements.
"First time buyer mortgage rates have fallen over the past six months and it is understandable that they are using this as a window of opportunity.
"The fact remains that lenders will always offer a better rate to borrowers with a bigger deposit."
"First time buyers currently have to raise an average deposit of £44,030 for their first home. At this level, borrowers must surely be finding themselves reliant on the so-called ‘Bank of Mum and Dad' to assist with raising funds."
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First time buyers who are lacking the funds to transform their new house into their ideal home could consider taking out a secured loan to cover the cost of any work required, or indeed desired. One of many finance options available, a secured loan for
home improvements could pave the way to that perfect property. Some borrowers may be keen to invest in a conservatory or extension to create extra living space, whilst others may simply want to redecorate and refurbish their new house in accordance with their own personal tastes and lifestyles.
