Newspaper article The Journal (Newcastle, England)

First-Time Buyers Still Need Help on Ladder

Newspaper article The Journal (Newcastle, England)

First-Time Buyers Still Need Help on Ladder

Article excerpt

Byline: Mieka Smiles

THE first-time buyer market in the North East looks fairly strong despite the end of the stamp duty holiday a month ago for those starting out on the home-buying process. But many first-time buyers are relying on their families to help them get a foot on the property ladder.

"I think there's quite a bit of movement in the first-time buyer market at the moment," said Dawn Whiffing, independent financial advisor at estate agents Sarah Mains Residential.

"But a lot of buyers are still getting parental help with their 10% deposit. I have found, though, that if they have got a decent enough income there are mortgage options for them."

Jayne Dehaty, franchise director at Reeds Rains, agreed that parents are helping out. "I have found that first-time buyers have managed to get their deposits together and I think that lenders have eased up a bit," she said.

"I would say that 70% of first-time buyers have had help from their family to raise their deposits ... definitely the majority."

But Jayne warned that buyers must make it clear to their solicitor if they are receiving help, as not doing so can hold up the process. "The solicitor needs to inform the lender. Sometimes it can slow things down if it's left to the last minute," she said.

Clive Rook, managing director at Rook Matthews Sayer Estate Agents, has also seen an increase in business: "We are receiving more enquiries from first-time buyers. On average 50% of these enquiries are going on to buy a property.

"First-time buyers have been looking at properties between the values of pounds 50,000 and pounds 80,000. Many properties they are looking at have been in more affordable areas, such as Ashington, Bedlington and Blyth.

"The mortgage market has eased slightly for first-time buyers. The majority of lenders are still looking for a 10% deposit, with the majority of buyers looking for help from family to raise the deposits."

The Government has created two schemes aimed at helping firsttime buyers to purchase new-build properties. …

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