First time buyers still have options to help them get on the property ladder

Times are hard, and now we’re hearing that the UK’s economic recovery is ‘paralysed’ by Europe’s debt crisis. With the economy the way it is, first time buyers often write off the possibility of ever getting on the property ladder and believe they are set to rent for the rest of their lives. This is not the case anymore, with the government; various agencies; housing associations and property developers now offering a range of deals to help first time buyers get on that crucial ladder. Here are 5 tips that can help you keep those costs down…

Shared ownership

Shared-ownership is a terrific way into home ownership and is the main affordable housing scheme. If you cannot afford to buy outright, you can part buy part rent your home – you pay a rent on the share that you do not buy which is set at an ‘affordable’ rate. The bigger the share that you purchase, the less rent you have to pay.

The FirstBuy scheme

Saving for a deposit is something that holds lots of first time buyers back. Schemes like this give you a step up onto the ladder, by lending you some of the money through a shared equity offer. If you purchase your first home in England though the FirstBuy scheme, your deposit could be as low as 4% – there are online calculators to see the difference it could make. If you are looking in Scotland or Wales, there’s a similar scheme called Head Start.

Avoiding stamp dut

Not an offer as such, but a way to reduce the cost of purchasing your own home. If your home’s value is less than £250,000 there’s no Stamp Duty to pay if you complete before March 24, 2012. That could save you up to £2,500 when you move.

Family ownership with your parents

It is becoming increasingly popular for young single people to include their parents on their mortgages. Even if they just own 1% of the property this security enables you to borrow more money from the bank and buy a more expensive property.

Move to a cheaper area

This does not sound like a perfect solution but sometimes in life, we have to take a step sideways to move forwards. House prices in some areas are much cheaper. If you are willing to move to these areas then you can make buying a house a real possibility. You never know, you may make a hefty profit in the end. It is worth bearing in mind that cheaper areas do not always mean lower quality. For example, some areas are more expensive because they are close to good schools so it is worth researching prices in different areas.

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Many could find mortgage repayments lower than rent

These days renting a property is something that a growing number of people are doing, and this is for a variety of reasons. There are many people that are renting purely because they prefer not to be tied down to a particular area or property. Others want to enjoy the convenience of not having to worry about the upkeep of the property. Some people rent because they cannot afford a mortgage, struggle to get finance, or have damaged credit.

Property website Zoopla has recently released data showing that the monthly cost of renting a property is now higher than the cost of buying a home in a massive 80 percent of the UK. It is claimed that it costs about 10.5 percent more on average to rent a home than to buy one, which is an increase from the 8.7 percent seen in the middle of last year.

In fourteen of the largest towns and cities across Great Britain the cost of renting a home was more than 20 percent higher than the cost of buying one. In Milton Keynes, for example, the monthly rent on a two bedroom flat was £785 whereas the monthly cost of buying a home on an interest only mortgage was 42 percent lower at £554.

It is thought that the reason that there is now such a wide gap between renting and buying in so many places is because the high demand for rental homes has resulted in an increase in rents. At the same time low demand for purchased property had driven down the price. With the addition of the all time low base interest rate this has resulted in a situation where it actually costs less per month to pay a mortgage than to pay rent.

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Copycat brands confusing shoppers

It has recently been claimed that many shoppers are getting confused and even conned as a result of copycat brands of a variety of products hitting the shelves. Read more

Tags: copycat, copycat brands, legal action, consumer shopping, beauty products, colouring, buying, trade

How to Save Money When Buying Groceries

In just about every household the largest expense is that of food. And, with the rising food prices many are finding it harder and harder to manage to buy the same foods in the same quantities as they once did. The price rise in food in the past year was well above the official inflation rate at an average of 5.9%. Read more

Tags: higher priced ones, price, supermarkets, mysupermarket, significant savings, buying, lowest price, supermarket guide

Consumers warned about getting foreign currency at the airport

For many people that lead busy lives organising foreign money in time for their holidays can be difficult, and many cannot find the time to get this done. Read more

Tags: travel, finance, buying, airport currency exchange, foreign currency, economics, Dynamic currency conversion, city

Cash may run dry for those interested in scrapping their old cars

Following the budget last month, the Chancellor of the Exchequer, Alistair Darling, announced the launch of a car scrappage scheme. The scheme was designed to encourage motorists to get rid of older, environmentally unfriendly vehicles and buy new vehicles that were greener and more reliable. Read more

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Study: Home-buying process ‘fraught with difficulties’

A new study by AA Insurance has found that prospective homeowners are increasingly wary of buying a new home.

The survey found that buying a house tops the list of daunting prospects among young people ahead of getting married or divorced and starting their own business.

Discontent stems from a range of sources, with 29 per cent saying they found the whole home-buying process difficult while one in ten harboured serious concerns about hidden faults.

Estate agents in particular do little to assuage the fears of homebuyers as 62 per cent of respondents said they did not trust them, placing them only marginally behind politicians (73 per cent) in terms of general unscrupulousness.

And even once homebuyers have taken the plunge it seems almost three in ten find they are unsatisfied with their new dwelling after moving in.

Janet Pell, head of AA Home Insurance, commented: “For most people, buying a home will be the most important purchase they make in their lifetime, so it’s really important to get it right and make sure you have no regrets once the contract is signed.”

She added: “Once you’ve found your dream home, make sure you shop around for the best deal on your mortgage, surveys and home insurance”.

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Rics urges Hips postponement

The Royal Institution of Chartered Surveyors (Rics) has called for the introduction of home information packs (Hips) to be postponed.

The information packs, due to launch in 100 days, will give future buyers information estate agents might not see fit to disclose at the point of sale, such as local searches, sales statements and leasehold documentation as well as an energy performance certificate revealing their future home’s level of energy efficiency.

They are intended to encourage greater transparency in the selling process and slash the high number of sales which fall through each year.

Under current government plans, the information packs will become mandatory from June.

But Rics spokesman Jeremy Leaf insists comprehensive reform measures are needed to “sweep up all the problems with home buying and selling”, not just stop-gap solutions.

More seriously, Hips in their current form are irredeemably “depleted”, with “most of the stuffing removed”, he claims.

Meanwhile, the director general of the Association of Home Information Pack Providers (AHIPP) Mike Ockenden has staunchly defended the information packs, arguing that they would “greatly reduce the needless stress associated with buying and selling homes in this country”.

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