WHAT HOPE FOR STOCKPORT’S FIRST TIME BUYERS?

According to research carried out by housing charity Shelter, on average a single person living in the North West will take nearly 10 years to save up for a deposit to buy their first home. Shelter have based their research on the fact that most large mortgage lenders are currently insisting that buyers put down at least a 20% deposit themselves towards the purchase price. 

           Large deposits are only part of the problem however as high
           house prices remain the most significant barrier to first time
           buyers. Statistics from the Council of Mortgage Lenders show
           that only those on well above average incomes can afford to
           buy as in 2011 the average income of a first time buyer in the
           North West was £29,148 compared to the overall average
           salary in the region of £23,936.

           The Government is intervening with its ‘Help to Buy’ scheme
           where a 75% mortgage from a lender is topped up by a 20% equity loan funded by the tax payer. The scheme has attracted criticism from several quarters however with concerns that it will inflate house prices further making ownership even more unattainable. An additional problem with the scheme is that a large part of the risk is taken by the Government and therefore the taxpayer, rather than by the mortgage lender.

In order to make home ownership more accessible to local buyers, Vernon Building Society is offering 95% mortgages exclusively to people buying within a 25 mile radius of Stockport.

The Society is also helping prospective buyers save with their Regular Saver ISA account, a tax free monthly savings account which pays a bonus of up to £1,000 to the saver when they take their mortgage with the Society.

Ian Keeling the Society’s Head of Sales & Marketing commented

“We recognise the difficulties faced by today’s prospective first time buyers and through the development of our 95% mortgages and specifically focused regular savings accounts, we are doing what we can to help local purchasers achieve their home ownership dream.”

The Vernon Building Society is a local, independent building society, based in Stockport. The Society was founded in 1924 and is the only local building society serving the Stockport and East Cheshire area. It has built a strong reputation as a trusted provider of financial products to the local population with branches in Stockport, Edgeley, Marple, Bramhall, Hazel Grove, Poynton and Reddish. www.thevernon.co.uk

The Regular Saver ISA account pays a bonus on completion of a mortgage with the Society. The amount is 10% of the capital balance in the account at the time of application. The maximum bonus payable is £1,000.

More information about the Vernon’s first time buyer mortgages and savings accounts can be found at www.thevernon.co.uk or in any of their local branches.