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50% of First Time Buyers feel positive about General Election

The current economy and housing market has made it more difficult for first time buyers to get on the property ladder than ever before. In this article, our Money Mum and Dad have broken down exactly what each political party has proposed to help first time buyers ahead of this week's general election.

A photo of Daniel Sharpe-Szunko, the author

By Daniel Sharpe-Szunko

Published on: 2 July 2024

3 min read

50% of First Time Buyers feel positive about General Election

A recent survey has revealed that 46% of first time buyers who were interviewed felt positive about the general election outcomes for buying a home. The survey carried out by the mortgage lender Aldermore, interviewed 2,000 potential first time buyers recently.

Of the people interviewed, it found that almost half felt as though their chances of being able to get on the property ladder would improve after the upcoming election. The report also shows that 17% did not think that the election would help, and 33% didn’t think that it would make any difference.

The current economy and housing market has made it more difficult for first time buyers to get on the property ladder than ever before. The general election has promised several new schemes and options for supporting people in the difficult situation of how to buy their first home. There has been speculation for months that increasing mortgage rates would affect how people voted in this year’s general election, including this Sky News report from around 9 months ago.

Mortgage crisis: Could surging rates sway voters in next general election?

Some of the major changes that are being discussed and considered by each of the party leaders to help first time buyers are:

There are several different schemes and plans to help the current situation for first time buyers in the UK.

The Tory party has pledged to abolish Stamp Duty for most first time buyers by increasing the threshold permanently to £425,000.

It will also launch a new and improved version of the Help to Buy scheme with a 20% equity loan for new build homes.

Another home builder 5% funded deposit scheme promises to support more first time buyers. It will also continue to fund the mortgage guarantee scheme which has apparently helped over 40,000 buyers with shared ownership purchases.

Finally, the property price cap will aim to set a reasonable limit on house price increases under a new review.

The Labour party believes that its support for home building and to increase new home construction will help more first time buyers. They suggest that the current average age for first time buyers in the UK is 37 which is too high.

It promises to build 1.5 million new homes in the next 4 years with an offer of first refusal for first time buyers.

They have also pledged a revamped mortgage guarantee scheme to help improve first time buyers struggling with raising a deposit.

The Lib Dems focused on its very own Rent to Own scheme which it would launch to support renters to transition from tenants to home owners. The scheme will support renters with a 30 year plan to own the property outright.

It also talked about the LISA (Lifetime ISA) which is a generous scheme to help to encourage more first time buyers to save a deposit. They aim to increase the cap on the housing limits for this scheme and increase the number of homes available.

The Green party would focus its energy and efforts on improving the rental market to help increase the supply of affordable social housing.

The Reform UK party would plan to completely rebuild the planning system in the UK and make sure that more homes get built. It would also support home ownership with a 0% Stamp Duty rate for houses under £750,000.

It would also propose to scrap interest payments on student loans to help young people with affordability.

There are currently lots of different schemes available to help first time buyers and support you in your home buying plans. Every mortgage lender has its own range of first time buyer mortgage deals and rates for you to consider and there are hundreds of options.

For more information or to speak to a qualified mortgage expert then you can call 0800 009 6559 or CLICK HERE for help.

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Is a fixed rate mortgage a good idea now?

High mortgage interest rates have caused stress and concern for families across the UK over the last few years, and switching to a fixed rate mortgage can help in some situations.

A fixed rate mortgage offers more financial security compared to a variable rate, as your mortgage payments won't change during your 'fixed term'. You can choose for your mortgage rate to be fixed for either 2, 3, 5, or 10 years, depending on your lender and which option feels right for you.

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Everything you need to know about fixed rate mortgages - MPO

Will mortgage rates go down in 2024 UK?

Our MPO Money Mum & Dad are constantly checking the market to see what is happening with UK mortgage rates. Many economic experts now believe that the Bank of England base rate will go down by 0.25% in the Summer of 2024, with rates potentially settling at around 3.5% next year.

Banks will generally use the BoE base rate to decide which mortgage rates to offer, and certain types of mortgage (tracker rate mortgages) will be directly affected by any BoE rate changes.

What is the current mortgage rate UK?

UK mortgage rates will change over time, and currently the Bank of England (BoE) base rate is 5.25%. The BoE interest rate directly affects how much people on tracker rate mortgages will pay, and can also cause lenders to adjust their Standard Variable Rates.

Our MPO mortgage experts are constantly checking the rates on offer from each mortgage lender, to keep UK consumers up to date with the latest changes.

How much do you need for a mortgage in UK?

It can be hard to figure out how much money you need to earn to get certain types of mortgage -especially if you are a first time buyer or it's been years since you applied for one.

A lot of UK lenders will want you to earn at least £20,000 per year to qualify for a mortgage, but this isn't a general rule. People with lower incomes may still be able to get a mortgage based on:

  • Your credit score/credit history
  • The mortgage lender that you apply to
  • The type of mortgage that you need
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How much do I need to earn to get a mortgage? - MPO

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