Taking a longer view
The success of shared equity schemes such as Home Buy Direct has highlighted the fact that house buyers are increasingly willing to look at different ways of financing their dream home.
However this success should not hide the fact that there are many buyers who are not eligible for schemes such as Home Buy Direct but who still need a helping hand to get the homes they want and need particularly if their circumstances are likely to change over the longer term.
My own view is that the recession has brought about a mini-revolution in the way many of our customers are buying their homes. Previously most home buyers tended to buy for the short term secure in the knowledge that if circumstances changed (children parents coming to live with them more money in their pocket) they could trade up to a bigger house.
Now there are real signs that consumers are taking a longer view planning and looking for houses that they can grow into. Of course affordability is a key issue. Bigger houses with more bedrooms means bigger mortgages and it must be remembered that the best loans available at the moment are attached to a lower loan to value.
The solution for those with a longer term plan is to utilise one of the many varieties of purchasing schemes now available. Housebuilder shared equity schemes such Home Buy Direct and Miller''s own MiWay product can offer much the same benefits to a home buyer as the Government scheme. It is also worth looking out for deposit-match schemes which effectively double your mortgage deposit offers to pay stamp duty assisted moves and offers on legal fees. All of these options can help reduce loan to value and help achieve those long term goals.