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Encouraging Home Owners To Make The Best Of The Situation

By Sally Maison
Published: Saturday, April 10th, 2010

PIXTAL-00016585-001The budget set by the Chancellor earlier last month has given a first-time buyer a boost, with an increase in the stamp duty to £250,000 which was earlier at £125,000. However it comes with a one percent interest payment. This benefit extends for two whole years and is perceived to have an increase in the list of enthusiastic home owners.

Reports according to a financial portal moneysupermaket.com have shown a 15% increase in the number of individuals who are busy looking for information to take advantage of this benefit.

According to moneysupermaket, Hannah-Mercedes Skenfield, “There has been much debate over the past week as to what impact Darling’s measures will have on the housing market, and while the jury’s still out on that one, it’s clear that those most affected have welcomed it if numbers to our site are anything to go by. Having just had one of the busiest weekends of the year for house-hunting, the first-time buyer could well be back out after months of hibernation.”

Savills Private Finance’s director Melanie Bien, also quoted, “Easter is traditionally the busiest time of year for the housing market and the Chancellor’s stamp duty exemption for first-time buyers has provided a further boost. We have seen a pickup in inquiries from first-time buyers keen to take advantage of the tax break and buoyed at the prospect of saving up to £2,500.”

The stamp duty on the home loan front is mostly in favor of new home owners interested in buying new property. To add to the crunch everyone faced during recession many wanting to sell their property were not too happy about it. However were pushed to put it up for grabs to see the profit at the end of the sale. This refreshing news on stamp duty made it safer for many to retain their property.

Even the Post Office has decided to help consumers who want to buy property with a loan that one can afford along with a deposit of 10%. A small negative detail on one’s credit file can hold that loan back. HSBC showed how a 30% deposit can dip the interest rate to 3%, while a 10% deposit has an interest rate at nearly 6%. August of 2007 showed only 800 home-owners loan that required a 10% deposit, however this number took a deep dive to just 100 as the eligibility to avail a loan became stringent.

Buyers must make use of technology and surf through the web to have an ocean of information on new home owners, places worth investing in, interest rates and more.

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