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The article, which appeared on the front pages of Tuesday’s Ipswich Star, broke the news about a new initiative to breathe life into the town’s housing market.
It mentioned that Ipswich Borough Council hope to roll out a system called Local Authority Mortgage Scheme by the end of this summer. This is aimed at first time buyers in Ipswich who are currently struggling to raise the necessary deposit to purchase a property and were inspired by the Goverment’s Help to Buy Scheme.
Ipswich Borough Council has teamed up with the Ipswich Building Society to help them secure a mortgage with a deposit of just 5% rather than the 20%+ that most lenders are still requiring.
Apparently the council will then act as a guarantor underwriting 20% of the loan and there are some terms and conditions that have to be met.
When viewing the criteria, Jonathan Waters confirmed that the terms and conditions clearly made sense and should definitely help first time buyers trying to buy in Ipswich.
“I should think all Ipswich estate agents will welcome news of this scheme”, said Jonathan.
The requirements ensure that the scheme will only benefit those applicants with a strong connection to the town looking to buy a property up to £155,000. It is open only to first time buyers who have lived within the Ipswich Borough Council boundary for a minimum of five years.
Jonathan commented “At the moment for first time buyers to purchase a property at £155,000, they would currently need a deposit of anywhere between £25,000 and £30,000 upwards. Many are currently renting because they cannot afford to buy as getting a deposit of this amount is virtually impossible for most first time buyers.”
“The fact that this scheme means that the first time buyers only have to find a 5% deposit is great news. Even more so that there is no apparent cost to borough tax payers.”
Jonathan was especially pleased that the scheme has had its criteria extended to property prices as high as £155,000. “This is good news, although most first time buyers we see in Ipswich at our three Ipswich area offices are normally looking up to a maximum of £125,000 which is the stamp duty threshold.”
“The market has generally picked up anyway in this price bracket so the Ipswich Borough Council plans will encourage this to continue and hopefully become even more buoyant.”
“We are over 25% up so far in 2013 over the same period two years ago” said a delighted Jonathan. “Any moves that improve this even further would be most welcome by all Ipswich estate agents”.
“The Government scheme mentioned earlier only helped with first time buyers purchasing brand new properties. This is the first scheme that we have heard of for other home sales.”
“I am really pleased it is going to be here in Ipswich.”
See our associated article “I was a first time buyer 25 years ago – how have things changed?” and “Homeowners encouraged by low mortgage rates” and “UK mortgage lending up by a fifth”.
First Time Buyers Ipswich – To get your house move underway, contact Jonathan Waters or one of his senior valuation team:
625 Foxhall Road, Ipswich, Suffolk, IP3 8ND
01473 721133
jonathan@waters-ips.co.uk
35 Buttermarket, Ipswich, Suffolk, IP1 1BH
01473 281188
jonathanwaters@jonathanwaters.co.uk
Bristol Court, Betts Avenue, Martlesham Heath Business Park, Martlesham IP5 3RY
01473 620222
jonathan@waters-ips.co.uk
or visit www.jonathanwaters.co.uk
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