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'Mortgage budget' could help FTBs
07/03/2008
Solicitors in Belfast and Northern Ireland could see more first-time buyers (FTBs) able to enter the housing market if the recommendations made by the Association of Mortgage Intermediaries (AMI) are put into practice.
At the moment, solicitors are seeing fewer FTBs for property services, as they simply can not afford property in Belfast or Northern Ireland.
But solicitors might have more FTBs as clients if the AMI's suggestions to keep new buyers in mind when the budget is calculated are listened to.
The AMI is asking the chancellor to introduce a budget for the mortgage market, so that FTBs in Britain and Northern Ireland can afford to take on a mortgage.
Richard Farr, director of AMI, said: "The mortgage market is going through a turbulent period, largely due to the effects of the liquidity crunch. Lenders have said on the record that they are looking to improve their margins rather than increase market share, so while bank rates have been falling, last week actually saw an increase in the variable rates being charged by some lenders.
"The danger is that fewer people will get mortgages, and those who do will have to pay a great deal more for them. Partly as a result of the liquidity crisis lenders are restricting some of their innovative products that have allowed some first time buyers, the credit impaired and buy to let investors, into the market."
He added: "We believe the government should provide a boost to the market and support to consumers who will face a difficult period with tens of thousands of people coming off fixed rate loans in the next year."
The AMI points out that buyers in Britain and Northern Ireland are not being treated fairly, as thresholds for stamp duty have not risen in line with property prices, for example.
Visit our residential property services page
At the moment, solicitors are seeing fewer FTBs for property services, as they simply can not afford property in Belfast or Northern Ireland.
But solicitors might have more FTBs as clients if the AMI's suggestions to keep new buyers in mind when the budget is calculated are listened to.
The AMI is asking the chancellor to introduce a budget for the mortgage market, so that FTBs in Britain and Northern Ireland can afford to take on a mortgage.
Richard Farr, director of AMI, said: "The mortgage market is going through a turbulent period, largely due to the effects of the liquidity crunch. Lenders have said on the record that they are looking to improve their margins rather than increase market share, so while bank rates have been falling, last week actually saw an increase in the variable rates being charged by some lenders.
"The danger is that fewer people will get mortgages, and those who do will have to pay a great deal more for them. Partly as a result of the liquidity crisis lenders are restricting some of their innovative products that have allowed some first time buyers, the credit impaired and buy to let investors, into the market."
He added: "We believe the government should provide a boost to the market and support to consumers who will face a difficult period with tens of thousands of people coming off fixed rate loans in the next year."
The AMI points out that buyers in Britain and Northern Ireland are not being treated fairly, as thresholds for stamp duty have not risen in line with property prices, for example.
Visit our residential property services page
