Coreco were in the press last week talking about the costs associated with the Help To Buy London Scheme and how, in essence at least, the scheme itself has started to help a number of borrowers get onto the property ladder. After all, a whopping 40% loan from the Government that is interest free for 5 years is pretty enticing.

Elsewhere, there is some innovation coming back into the mortgage market and we have seen some lenders starting to react to the challenges around lending to older buyers. Coreco now have access to one particular exclusive scheme that allows those over the age of 55 to borrow up age 95 on an interest only basis, whilst one of the big boys Halifax have now adapted a much more reasonable approach up allowing borrowing up to age 70.

There has also been more developments from lenders looking to help family members assist their kids to get onto the property ladder. It is welcome to see more lenders identifying this as an issue and trying to assist where possible, especially allowing mortgages to be taken on a joint basis but allowing only one party to be on the property deeds.

Parents and grandparents are keen to help their children as much as possible, but are looking for more innovative ways rather than just parting with vast amounts of their hard earned cash as they also have to think about how it affects their future needs and bear in mind potential inheritance tax issues.

Rate wise the mortgage market is still nothing short of remarkable with 2 year variable tracker rates from 1.28% (3.58% APRC), 2 year fixed rates at just 1.34% (3.64% APRC) and a 5 year fix from a mere 2.23% (3.37% APRC).

Buy To Let rates have slipped down even further and are now available from just 1.64% (5.10% APRC).

 

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