In the aftermath of last year’s mini budget, many first-time buyers were deterred from entering what - at the time - was a particularly turbulent, unpredictable market.
Fast forward to the present day, and the levelling out of mortgage rates from their October peak, is finally beginning to translate into a marked uptick in first time buyer sales, at least when compared against the last ‘normal’ market of 2019.
Currrently, the cheapest rate on low-deposit (5%) mortgage products sits at around 5.62% (Skipton Building Society) with no upfront fee, although many first-time buyers are managing to circumnavigate at least some of these higher borrowing costs, with a combination of larger deposits, and the fact that today's sellers are largely being more realistic about the level at which they market their properties.
Beyond the incentive of greater choice in mortgage products, those looking to take a first step onto the housing ladder in 2023 are also benefiting from the uplift provided by the Mortgage Guarantee Scheme. Launched in 2021, this government-backed scheme supports lenders to offer more 5% deposit mortgages, by compensating them for a portion of net losses in the event of repossession. This extra level of protection is inevitably assisting many credit-worthy buyers in actioning their investment ambitions.
Thankfully, these latest developments are coinciding with a welcome boost in affordable one and two bedroom properties coming to the market, including this one bedroom, first floor maisonette, located less than one mile from Maidenhead Town Centre and railway line.
Located in a quiet residential close, the property features a spacious living/ dining room, kitchen, double bedroom with fitted wardrobe and modern family bathroom, as well as ample off-street parking.
Summary
Currently, first time buyers can borrow up to four-and-a-half times their single or joint income, although more stringent stress testing on affordability does remain a common stumbling block. For this reason, it is worth anyone contemplating a first step on the property ladder this year, speaking with a reputable mortgage adviser before beginning their property search.
With borrowing capactiy established, and a benchmark budget in place, those looking for an effective route to home-ownership might find themselves in the best possible position to make an informed, actionable buying decision, in what is arguably looking set to be a surprisingly buoyant spring/summer market.
For more information on the featured property, or other suitable first time buyer opportunities, please email property@braxtons.co.uk.