Government-Backed Mortgage Lender Guarantee Announced in Budget
George Osborne announced yesterday the introduction of a government-backed mortgage lender guarantee in order to help house hunters who are struggling to find a deposit.
The guarantee will provide up to £130bn of lending between 2014 and 2017 in order to encourage lenders to provide high loan-to-value mortgages. It could continue to run beyond this with the Bank of England’s agreement.
This will undoubtedly give a boost to property prices especially in the areas The House Crowd are buying. These are the poorer areas where people are least able to raise a 20% deposit. That’s good news in that it will give us better capital gains and make it easier to sell properties.
Conversely, it will also make it harder, after 2013, to buy property that will achieve double-digit yields.
It is, therefore, our intention to capitalise on this announcement and buy as many properties as we possibly can in the next 12 months.
If you want to maximise your returns, then the next few months present the best opportunity for you to do so.
How Will The Chancellor’s Announcement Affect Property Investors?
Investing through property crowdfunding and secured P2P lending in real estate is fast becoming recognised as a great way to invest in property. The promised increase in mortgage lending is likely to have positive outcomes for our investors, whilst simultaneously providing high-quality property on the market for those who are set to benefit from these new announcements.
As property prices are set to rise over the next few years, we anticipate that there will be a rise in the number of people seeking rental accommodation, particularly in the city of Manchester. The city is experiencing a surge at the moment, with significant rejuvenation to position Manchester as a city for the future. This is bringing a wealth of new businesses to Manchester, and thus vast swathes of new jobs.
The predicted boom in the number of rental households in the UK means that there will be unprecedented demand for rented properties, of course. Again, The House Crowd will invest in buy-to-let rental properties to feed this demand. With the continued growth of Manchester as the leading city in the Northern Powerhouse, we may also find excellent rental yields coming through from these buy-to-let investments.
If you would like to learn more about investing in property crowdfunding, then register with The House Crowd for further information. You can do this directly by clicking on the purple button below. Alternatively, to view our full range of investment properties, click the blue button.
If you have any questions or queries about the new Government-backed mortgage lender guarantee announcement, or are looking for any other advice about property investment, please feel free to get in touch. We’re always happy to have a chat about anything to do with property, and to help you plan your next moves on the property market.