How much to pay the buyer of real estate in the UK

Parents in the UK play a huge role in the lives of their children, supporting them in purchasing their first home. Almost two-thirds of first-time buyers afford their own home in the UK, used by parents or their closest relatives.

A very large number of young families in the UK can’t save up for the initial Deposit required by banks to conclude the contract of mortgage lending. For 25% of respondents took time from 1 to 2 years to accumulate the required amount. And 18% said that it took them about 5 years to save enough for a down payment on their first home.

Therefore, as it is impossible by the way came a new program of government support of the mortgage market, which provides that a 20% down payment must be paid by the government on the terms of the loan. If a Bank grants a mortgage loan of 75% of the purchase price, the buyer is required to pay only 5% down payment.

The program is extremely popular with UK residents.

As a result, UK banks on the one hand, swamped with applications on the loan, and on the other hand, banks found themselves among tough competition. Accordingly, the competitive environment forces the banks to reduce prices for their mortgage products.

Moreover, the banks began to not only lower mortgage rates, but also lowered the level of the initial payment, until the amount of 5% of the cost of housing.

Some banks offer mortgages to first-time buyers afford a house in the UK on the terms of the LTV (ratio of loans to value of purchase) – 95 % , and the loan rate is 4,99%.

Thus, in this Bank, the customer can get required loan amount without resorting to government assistance.

This situation clearly demonstrates the recovery of the financial situation in the UK which in turn should have a positive impact on the overall economic situation in the country.

® Helen Entree. On 20.11.2013 g.

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