The Manchester Mortgage

Manchester City Council looks set to announce a ‘Manchester Mortgage’ in the coming weeks, offering first-time buyers in the city a mortgage with just a five per cent deposit on properties up to the value of £142,500.

The scheme, which is similar to programmes already in place in nearby Oldham, Trafford and Rochdale, will see the council help struggling home-buyers access mortgages through Manchester Building Society and the Co-operative Bank, by underwriting up to 20 per cent of their loans.

It is anticipated the scheme will receive final sign-off -with a maximum £6m risk- from the council’s executive committee in late November.

Here at The House Crowd, we believe any reputable scheme aimed at providing a pathway to home ownership should be applauded. However, given that the council stands to receive at least £500 from partner lenders for every loan set up under the scheme, as well as boosts to council tax revenues, it is important to reiterate that programmes such as this need to be implemented with wholly transparent purposes to be successful. Here’s trusting this one is…

The House Crowd offers an alternative solution for first-time buyers struggling to raise a deposit for their first home. For as little as £1000, our crowdfunding property investment model provides a minimum annual return of 6%, in addition to a share of house sale profits – ideal for growing your deposit in order to take your first step onto the property ladder.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

The difficulties of taking that 1st step onto the UK housing ladder

Regardless of the struggles prospective homeowners are currently facing to secure a mortgage and find the right property at the right value, it is safe to say that most British households, as has long been the case, aspire to own their own home. However, the financial woes of the past few years have, understandably, created a more risk-averse public, which is something the current Government is now looking to address.

The Government is rolling-out a range of measures through equity finance instruments that limit risk, improve affordability and fund home buying, with the aim of boosting first time buyer confidence. Schemes like First Buy, which provides affordable new build housing to first-time buyers with a 5% deposit, are intended to share risk amongst the funders and buyer, as well as being of little or no burden to the public purse.

Another market-based product with comparable supposed benefits is a new partnership based mortgage aimed at middle-income households able to stump up a 20% deposit. This product involves an equity stake injection to lessen the risk of negative equity and, trusting that price increases remain limited, should reduce mortgage payments below those of a traditional mortgage scheme.

Clearly, some steps are being taken by those in power to address buyer-reluctance and stabilise the market. However, it is yet to be seen whether the relatively small number of incentives being introduced can achieve the right blend of risk, price, debt and target consumers to spark the intended revival of buyer confidence.

At The House Crowd we offer a solution for buyers struggling to raise a deposit for their ideal home. For as little as £1,000, our crowdfunding property investment model provides a minimum annual return of 6%, in addition to a share of house sale profits – ideal for growing your deposit.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

How Investing in Property Can Help First-time Buyers

According to recent research by Halifax, the cost of buying a home, including buying costs, mortgage payments, income lost by funding a deposit rather than spending, insurance, and household maintenance and repair costs, is now almost a fifth lower than renting.

The research suggests average buying costs have dropped by 3% since 2011, whilst the cost of renting has gone up by 5%. Last year, the monthly cost saving associated with buying was calculated as £78 or 11% less than renting. In stark contrast, just four years ago average home buying costs were £1,048 per month, £324 or 45% – more than the average rent.

Whilst the figures from Halifax imply there has been a significant decline in the cost of buying a home – great news for those able to do so! They overlook the struggles many young adults are currently facing in raising a deposit, in order to get a foot on the property ladder. Furthermore, a recent industry report has suggested the number of 20-34 year olds living at home with their parents has now risen by 20% since 1997, seemingly a last option for young people trying to save for a deposit.

The House Crowd offers an alternative solution for first-time buyers struggling to raise a deposit for their first home. For as little as £1000, our crowdfunding property investment model provides a minimum annual return of 6%, in addition to a share of house sale profits –  showing how investing in property can ideal for helping to grow your deposit in order to take your first step onto the property ladder.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

UK mortgage lending famine harms worse off the most

Figures from the price comparison website Moneysupermarket have revealed the number of mortgages available to borrowers with a 10% deposit is down by more than a quarter in the last year, whilst bank loans supporting buyers with a 5% deposit have dropped by a third in the last six months.

Moneysupermarket’s findings make for uncomfortable reading as stagnant salaries and a lack of job opportunities for those starting out mean more and more people are struggling to save a significant deposit.

It is conceivable that first-time buyers with a 5% deposit may be forced to completely put off the thought of buying until they have at least a 10% deposit saved – or secured parental assistance. There are currently only 28 loan options available to those with a 5% deposit and, in truth, many of these will carry unrealistic qualification criteria. This desperate situation has arisen despite the government and banks recently introducing an £80 billion ‘Funding for Lending Scheme’, designed to boost lending to households and businesses.

The House Crowd offers an alternative solution for first-time buyers struggling to raise a deposit for their first home. For as little as £1000, our straightforward and transparent crowdfunding property investment model provides a typical 12 – 14% return – ideal for growing your deposit in order to take your first step onto the  property ladder.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).