Archive for April, 2010
Mortgage Approvals rises in March
March has seen an increase in the number of mortgages approved in the UK. The total number is 52,000 up from 48,000 in February. Indications are that First Time Buyers are looking to get onto the housing ladder but the tight restrictions imposed by lenders is still making life hard for them. There are more deals now available but lenders are still wanting large deposits to get the best deals and 10% minimum deposit for buyers. Someone therefore buying a home at £160,000 would need £16,000 deposit and would need to allow several thousands to cover costs and moving in expenses for a new home.
Stamp Duty and First time Buyers
With stamp duty not being charged for first time buyers on properties up to £250,000 what happens if 2 people are buying a home and one of them is not a first time buyer and the other is? To avoid the stamp duty both must be first time buyers to qualify however there may be a way to avoid paying the duty. With the help of your mortgage lender and a good solicitor it may be possible to buy the house in the name of the first time buyer if the applicants income is sufficient to cover the mortgage or if the lender allows a guarantor to make up for the shortfall in income.
Your solicitor will then be able to create a declaration of trust that protects to the individual who is not on the deeds of the property so that their interest in the property is protected. There is a small additional cost for this legal work but the saving in stamp duty will be substantial.