Home buyers to benefit from interest rate cuts
The Bank of England’s interest rates cut will have a positive impact for new home buyers.
05/08/2016 - General
The Bank of England’s decision to cut interest rates for the first time since 2009 will have a positive impact for new home buyers.
That’s our view - we believe that the cut, bringing rates down to a record low of 0.25 per cent, will translate to lower mortgage rates, making homes more affordable.
The interest cut, coupled with the continued availablity of buying aids such as the Help to Buy scheme, will enable more people to buy a new home and step onto the property ladder.
Gary Crisp, our Regional Chairman, said: “Our sales figures and visitor levels have remained consistently strong over the past 12 months as buyers have utilised the already low mortgages available.
“The Help to Buy scheme and subsequent Help to Buy ISA have allowed home buyers, who previously may not have been able to move on to the housing ladder, to buy their first home or upgrade to a larger property.
“Existing home owners have also been able to use our Home Exchange scheme to upgrade to a larger property, and allow us to take the hassle out of selling their old home.
“The availability of these buying incentives coupled with record-low interest rates mean that many more people will likely take advantage of these ideal market conditions to buy a new home.”
Since its creation in 2013, over 81,000 buyers have used the government backed Help to Buy incentive. The scheme allows buyers to put down a five per cent deposit on their new home with a 75 per cent mortgage, while the remaining 20 per cent is paid as an equity loan, which remains interest free for five years.
The Help to Buy ISA, which was introduced last December, is designed to help first-time buyers save up for a deposit. Those using the scheme can save £200 a month into their ISA, which will be topped up by an additional 25 per cent by the government when used to put a deposit on a home.