Linden Homes’ drop-in clinic open for advice, helping to dispel the myths associated with getting a mortgage
There is a common misconception at the moment that it is impossible to get an affordable mortgage: It is a myth.
This misconception has its origins in the worst of the recession – when times were very uncertain and the lenders began tightening their belts: But that was at the height of the credit crunch and what many people don’t realise is that a lot has changed since then.
Interestingly, if you believe it’s hard to get a first time buyer mortgage, you’re not alone. A survey, commissioned by Halifax, discovered that it is currently a very common view:
Their report, published this summer, found that 92% of the survey’s respondents thought it was hard for first time buyers to obtain a mortgage at the moment. The perception was, amongst 84% of those surveyed, that banks do not want to engage with first time buyers – so there is little point in applying. Yet, conversely, those who had bought a home since the credit crunch in 2007 said they thought it was ‘very easy’ for first time buyers to obtain a mortgage at the moment – and many stated that it was easier than they had expected.
The Halifax report concluded that there are clear gaps between the perception of the mortgage market and the reality.
Perhaps a few years ago many doors may have been closed to first time buyers, but in the last two years lenders have been, albeit quietly, loosening their credit constrictions and, earlier this year, the Government introduced its NewBuy scheme.
Adam Champion is New Build Sales Director for The New Homes Group. He says the Halifax survey gave a very good overview of what was happening:
“The Halifax report was interesting – it clearly showed that the perception of mortgages was very different to what is actually on offer. Look at the Government’s NewBuy scheme, for example: Nearly 70% of those who apply for a NewBuy mortgage get one – and it’s not just for first time buyers, it’s for anyone buying a new build home.”
Adam says that when he explains to potential buyers what kind of mortgages are on offer and works out the figures for them, the overwhelming reaction is one of disbelief:
“People have come to the conclusion, quite wrongly, that all mortgages require a 10% or 15% deposit. It’s not true. I tell them that it is 5% and at first they don’t believe me.”
“They also don’t realise that you can get deals on new homes that aren’t available for older properties and that’s because they’re funded, in one way or another, by the building companies. Linden Homes, for example, has more schemes available than anyone else and offers a 95% mortgage; they work with half a dozen or so different lenders to set these mortgages up.”
Linden Homes, in a bid to try and dispel some of the current mortgage myths, is holding two mortgage drop-in clinics on Saturday 13th and Sunday 14th October in the sales and marketing suite at their Northfields development in Colchester.
(Northfields is an innovative development set alongside lots of green, open space within walking distance of Colchester train station: It consists of a range of two, three and four bedroom houses.)
During the mortgage clinics, you don’t have to sign up for anything – they are just a great opportunity to discuss, with mortgage experts, the various financial options now available and see how near to owning your own place you just might be.
Gareth Jacob is the sales and marketing director at Linden Homes Eastern:
“I think that until people actually sit down and get their heads around the figures, they don’t realise how affordable some of the current mortgages are: Linden Homes has lots of different schemes available to make it easier to buy homes like the ones at Northfields. We work closely with specialist financial advisers “The New Homes Mortgage Helpline” and they will be on hand to provide the facts and figures. Essentially they can tell you how much you can spend on your new home, how much your mortgage will cost you every month and how much you’ll need as a deposit to start with.
“We’d say that if you’ve tried getting a mortgage before and failed, then look again – and come along to the clinic to find out more because a lot has changed in the last two years or so.”
The sales and marketing suite at Northfields in Colchester is open daily from 10am to 5pm – with the drop in mortgage clinics being held all day on Saturday 13th and Sunday 14th October. For more details of the clinics of for information about the homes at Northfields, please call 01206 844 755 or alternatively please visit the Linden Homes’ website: www.lindenhomes.co.uk.
For more information about mortgages and other schemes, call the New Homes Mortgage Helpline on 01206 715 415.
For further information, contact Claire McCowan or Tracy Mannion at Remarkable Public Relations on 01962 893 893 or Claire.email@example.com
13 November 2012
All images are used for illustrative purposes only and are representative only. They may not be the same as the actual home you purchase and the specification may differ. Images may be of a slightly different model of home and may include optional upgrades and extras which involve additional cost. Individual features such as windows, brick, carpets, paint and other material colours may vary and also the specification of fittings may vary. Any furnishings and furniture are not included in any sale. Please check with our sales representatives for details of the exact specifications available at the development(s) for each type of home and the associated prices.