Jun 10
30
A Government department has announced that the price of properties in the UK has risen by 10% over the past twelve months. The news may be good for homeowners, but for first time buyers in the area, it may be more difficult to find an affordable mortgage quote in Colchester. The town has become increasingly popular with commuters who want to live quieter home life, but still want to work in the city. The other attraction of buying a home in Colchester is that although it is close to the capital, house prices are much lower.
The 10% inflation may have affected the whole of the UK, but with London being the most expensive place to live in the country, houses there have become even further out of reach for cash strapped first time investors, who are expected to find a deposit of at least 25%. Finding that size of deposit for a house in Colchester would be much easier, and the costs involved with commuting would be outweighed by lower loan repayments.
However, getting a lower mortgage quote in Colchester does not guarantee a mortgage approval. This April, approvals were down by 9% on last year’s figures, and the number of first time buyer mortgages that were approved made up for only 35% of the total, which is the lowest proportion since the autumn of 2007. There are however a number of first time buyer incentives in Colchester that will allow investors to secure a mortgage with a small deposit, as little as 5% in some cases, with the help of housing developers.
Bovis and Taylor Wimpey are two developers who still have unsold apartments in Colchester, ideal for families and commuters. These developers are offering special mortgage deals with low deposits in conjunction with mainstream lenders to help first time investors take their first steps on the property ladder. These newly built homes give access to some of the most competitive mortgage quotes in Colchester, and are well suited for buyers having trouble raising a large deposit.
