Solicitors in North Wales are anticipating a rise in first time buyers, due to new ways that mortgage affordability could be calculated.
Stress tests designed to show detailed analysis of the mortgage applicants’ ability to make their payments under various circumstances are no longer a requirement of lenders. This means that access to affordable mortgages could be improved for many who previously could not prove their financial resilience.
It is expected that up to a 24 percent increase in new buyers could be possible over the next five year period because of these changes. While this could be seen as a positive outcome, as more people will be able to buy their own property, concerns have also been raised that these changes could drive up house prices. Though it is not yet known exactly how much these increases could be, an expected figure of up to seven percent is currently anticipated.
These changes could suggest that conveyancing solicitors in North Wales will be able to work with lower income families and individuals, supporting them to buy their first home. A smaller deposit will also be required, and there are suggestions that future changes could include the removal of long mortgage periods, as well as making the process of remortgaging a house easier. These changes, alongside initiatives like the “100 percent mortgage” (where first time buyers can take out a 100 percent loan) could make home ownership a reality for more people.
For advice and guidance on the legalities of buying a property, get in touch with us here at Bennett Smith Solicitors today.
