Should there be a motive for those considering obtaining a residence for the first time to get excited? A first time buyer who desires to escape paying stamp duty may now make a decision on whether or not to pay out for up to £250,000 on their first house in comparison with the prior total of £125,000.

Clearly if money is not an issue then why not?

Current lending facts explain that even with the slight growth on mortgage lending it really is however a great distance from what it was 5 years ago. A great deal of first time buyers have little or no capital to release. Several even have debt difficulties and need to get Debt Management aid in various forms.

Two of the common Debt Consolidation techniques are IVA’s, for England and a Trust Deed if you live in Scotland. These are legally binding agreements where payments are made in the form of contributions so a person’s creditors obtain a return of the money lent. What the chancellor doesn’t pass on to us is that the financial institutions will no longer entertain mortgage lending for people who had to get support with their monetary difficulties in this way.

Yet if many home movers have had to perform some Debt Consolidation the financial institutions might search for a basis to reject a mortgage claim. All too often the outlook with the financial institutions is that they want the quality applicant and no one with any minimal history of difficulties.

The housing market is trying to recover itself. People are frantic to get on the property ladder. This can only happen though if the financial institutions take an open opinion of clients who have had to search for the assistance from a Debt Management firm. Quite a few argue that if they have been able to acquire some Debt Consolidation by means of quite a few of the schemes available this should at least prove they plan to act sensibly.

In the past people who were even bankrupt could acquire a mortgage and therefore struggle on with the housing market. Yet, now, if you happen to be in an IVA or Trust Deed, or perhaps completed one of late, the bank will laugh you out of the building. The economy doesn’t need a return to hasty lending but the housing market is on its knees and this information today from the chancellor is nothing but an effort to save the government votes.

The irony is that it is actually the best point in time to buy a home with house values being competitive. If a first time buyer is contemplating borrowing money at the value of a king’s ransom, they need to own deep pockets.

Departed are the days when saving the mystical 5 percent could unlock the doors to your new property. These were the times when you could be treated like a celebrity when you hand over your precious deposit. In the present day the financial institutions on average might barely offer a first time buyer a mortgage if you have a deposit between 10 to 15%.

Let’s expect that a change in the lending guidelines may enable the housing market to return to steady growth. The financial institutions need to be much more heedful of the fact that they now work for the British tax payer.

Let’s see when these first batches of rich new home owners break the bank on their £250,000 investment.

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