The first time buyer market was included in a number of points in yesterday’s 2011 Budget in an effort to improve the first time buyer’s opportunity to get a foot on the housing ladder.
Chancellor of the Exchequer George Osborne started by saying a new shared equity scheme worth £250 million is to be set up. Named First Buy, the scheme will allow first time buyers purchasing a new build property to have an interest free loan. Osborne estimates this will help around 10,000 first time buyers onto the housing market.
Commenting on the First Buy scheme, Peter Williams the executive director of the IMLA (Intermediary Mortgage Lenders Association) stated the scheme should be:
“one of a number of mechanisms to help the mortgage and housing market”
The level of stamp duty exemption for the first time buyer stays at £250,000 for the time being – the Building Societies Association (BSA) had previously called for this to be made permanent but this has not come to fruition as yet.
The CML (Council of Mortgage Lenders) did welcome the news, although it added that more should still be done to help the first time buyer.
First time buyers will probably also benefit from the announced rise in the personal tax allowance.
With so many factors to take into consideration when looking at their first mortgage, any first time buyer would benefit greatly from the services of a mortgage advisor who can help them find the best mortgage deal for their circumstances.