Financial Choices for First-Time Buyers

You hear lots of reports about first-time buyers facing problems when it comes to finding the funds to buy their first home, but one of the good things about living in a semi-capitalist society is that there are always solution providers coming up with ways of helping solve the issues.

There is the government with its financial favouritism towards first-time buyers, displayed in such products as Help to Buy Isas and the Help to Buy scheme, but there are also a plethora of solutions being offered by our financial sector. Great brains have gone to work to come up with some very creative products which might suit the needs of first-time buyers looking to purchase their first Leicester property.

There are older ideas such as multi-generation mortgages, buy-to-let initiatives aimed at allowing people to build up capital to buy property in their area of choice and parental guarantees. There are also reinventions of valuable ideas from the past and ideas which are attracting a range of different reactions.

One of the newer ideas is that of Gifted Deposits. This initiative will be launched in April and is aimed at allowing people to take their first step on the property ladder by using social wealth as a means of persuading people to help them fund their deposits. They can use videos and photos to tell their story and ‘create engaging campaigns’ aimed at getting the money rolling in.

The idea is being billed as a way of encouraging family members as well as strangers to help first-time buyers to fund their property dreams, but this will probably not be the best idea if relatives are involved. This is because money sent via GiftedDeposit.com will cost five per cent, meaning that it would be financially sensible to just offer the money directly.

Another idea originates from the think tank known as the Social Market Foundation. It has come up with a report, which has been sponsored by a crowdfunding for property business, which offers the suggestion that first-time buyers could use crowdfunding as a means of building up their deposits. This, the report claims, could be particularly effective if the UK government would allow people to invest Help to Buy Isas via property crowdfunding websites.

If you already have your property finances in place or are just starting out on your quest to take your first steps on the property ladder, get in touch with our expert team today for all the help and advice you could need to make your Leicester property journey a success. Call us on 01162 544 555.