Is the credit crunch over? Well here is an innovative product from a MASSIVE lender which could show signs that it is melting.
I was watching Working Lunch yesterday and Lloyds were on there talking about their brand new never seen before first time buyer product. It is quite an amzing product.
Here is how it goes. Mum and Dad want to help Son get on the property ladder. Mum and Dad do not want to simply hand over their savings and let Son put it in to a house for them to remortgage later down the line and squander Mum and Dad’s savings.
So Lloyds let you deposit the savings as the deposit but ring fence it so Son cannot get access. These savings earn interest and are released once the property values rise so that the overall loan to value is less than 75%.
Quite innovative would you not agree? Now because Lloyds are massive they can make an impact on the mortgage scene. I also learnt something else. When a first time buyer buys it enables 4 more purchases to occur. Quite a statistic eh? So once the bottom end starts going the rest rockets!
So lets not miss out. Now I had a good email exchange with Liz, my broker, and if you want to release some cheap money to get investing then consider the fee free remortgage. Rates are from 3.49% and it costs you nothing to raise the finance as they pay the survey and legals. Find out more.
So if you want to take advantage of the low prices I would suggest buy now. I would not say this lightly but I think we have hit the bottom now. In other words when the data comes out for property prices for quarter 2 2009 in August 2009 I think these will be the lowest reported figures. i.e. the prices being struck now are the lowest they will get.
Property is back in fashion! If you want to learn more have a chat with one of my team.
Posted on: 21st May 2009