25th August 2016
Interest rates cut is ‘good news for home-hunters’
The Bank of England’s decision to cut UK interest rates is set to provide a boost to would-be homeowners, says Chestnut Homes.
Interest rates have been cut from 0.5 per cent to 0.25 per cent, a record low and the first cut since 2009.
The Lincolnshire housebuilder is encouraging potential buyers to take advantage of the changes and make the move to buy rather than rent – with typical mortgage repayments on a £150,000 home set to fall by £20 a month, according to the Council of Mortgage Lenders.
This, alongside the continuing availability of the Help to Buy scheme and the Help to Buy ISA, paints a bright picture for buyers – both first-timers and next steppers.
David Newton, Managing Director of Chestnut Homes, said: “This is a great time for people looking to buy their first home, with interest rates at record lows and various schemes in place to make buying a home more affordable.
“With rental prices continuing to rise, now is the right time to take the step from being a tenant to being a homeowner.
“Likewise, those who already own a home can take confidence from the lowering of interest rates when making their next move.”
The government-backed Help to Buy scheme has now supported the purchase of more than 81,000 new-build homes nationwide since its inception in 2013.
With Help to Buy, a new home can be purchased with a five per cent deposit and a 75 per cent mortgage.
The remaining 20 per cent is provided as an equity loan by the government, interest-free for the first five years of home ownership.
David Newton added: “The Help to Buy scheme has made owning a home that much more realistic for those who dream of taking that first step onto the property ladder.
“It isn’t just young people who have benefited from the scheme, with families and a wide variety of homeowners taking advantage of Help to Buy to move into a home of their own which meets their needs.”
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