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First-time Buyers Dilemma!

Gordon Brown told us when he was a prudent Chancellor for 11 years that he did not want an economy that went from Boom to Bust and back again. Gordon Brown and his new Chancellor are now practicing the Big Bang Theory with our Economy it seems!

Modern housing for First-time buyers

Modern housing for First-time buyers

Our Banking system is in melt-down, the Bank of England must be running out of money as all it has done for the last month is pump billions of pounds of money into the money markets and now the banks are being bailed out by the government to the tune of £50 billion for the nationalisation of Bradford and Bingley. Wow! It is amazing that the bankers who created this problem and who earn hundreds of thousands of pounds a year and more in earnings and bonuses are now being bailed out by the man in the street who earns £20,000 a year, thanks Gordon and Alistair

Just over three weeks ago Gordon Brown and Alistair Darling unveiled a £1bn package to stimulate the ; however it seems that this has had little or no impact todate. Most first time buyers will probably find a mortgage at 90% loan to value; this will mean that they will need to find a 10% deposit. With the average house costing £170,000 a first time borrower will need to find £17,000 just for a deposit. Then they will need to add around £2,000 to £4,500 to their deposit for solicitor’s fees, search fees and valuation fees. Thanks to Gordon Brown and Alistair Darling they will not have to pay for Stamp duty on a home costing £170,000. So it will cost the in excess of £19,000 for their first home

But where are first time buyers supposed to find this kind of money for a deposit on their first home? It is highly unlikely that they will have saved this kind of money and they will find it impossible to borrow their deposit from the bank. They could look for some of the 6,000 shared ownership mortgages that were part of the government incentive earlier this month or they could look to the bank of mum and dad if they are fortunate to have parents who are able to help them

The first time buyers were the very people the government were looking to in order to lead them out of the current situation and to get the housing market moving. But they just simply cannot afford the deposit and then the banks don’t want to lend them any money.

The latest statistics for the mortgage lenders are showing that over a year ago the mortgage lenders were arranging over £10 billion of mortgages a month, in July this year that figure dropped to £3 billion and this month has seen it drop to £143 million, Yes you read that correctly it was £143 million.

The banks just don’t seem to want to lend money to each other, they don’t trust each other and we are on the verge of high inflation, huge pay demands by workers and rising food and utility costs which it seems is the bitter tablet we will all have to swallow in order to resolve our dilemma within the world economy

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236 Responses to First-time Buyers Dilemma!

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  125. Mortgage Lenders Finally Slash Mortgage Rates | Mortgage Expert | Best Rate Re-Mortgage on March 8, 2010 at 9:48 pm

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  148. Can Small Businesses Survive This Recession? on May 13, 2010 at 9:47 am

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  172. Government Helps Homeowners With New Mortgage Support | Mortgage News | Calculate A Mortgage | CalculateAMortgage.info on July 17, 2010 at 12:15 pm

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  184. Stop! Do You Need Unemployment Protection? | Recession Tips | My Debt Problem on July 29, 2010 at 10:33 am

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  186. Can Small Businesses Survive This Recession? on July 30, 2010 at 11:11 am

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  203. Mortgage Gloom Set to Continue Through 2009 on September 18, 2010 at 11:05 pm

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  204. British Government May Start Printing « Student Loans Zone on September 22, 2010 at 5:21 am

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  205. Do Debt Management Advisors Bite? | Debt Expert on September 28, 2010 at 1:31 am

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  215. Confidence is the Key to Recovery From This Recession on October 12, 2010 at 2:42 am

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  218. Is Money Too Tight! | Money Saving Tip | How To Save Money Tips | The Unknown Shopper on November 3, 2010 at 4:15 pm

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  221. Leslie Feiner on November 18, 2010 at 2:58 am

    Interesting site, though I would love to see a bit more media! – Good post anyway. Cheers!

  222. The Greatest Money Saving Tips Ever! | How To Save Money Tips | The Unknown Shopper on December 2, 2010 at 2:03 pm

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  224. Yadira Bonhomme on December 23, 2010 at 4:57 am

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  225. Mortgage Lenders Finally Slash Mortgage Rates | Mortgage Expert | Credit Cards Tips on December 30, 2010 at 2:59 pm

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  228. Aachen Blog » Are Homebuyers Being Frozen Out of the Mortgage Market? on February 3, 2011 at 12:28 pm

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  236. Why Your Credit Report so Important to You? | Trusted Credit Reports on August 2, 2011 at 2:47 pm

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