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New Mortgage Rules from April 2013

New Mortgage Rules

Everyone needs a home, so eventually we all come to a point when we need to buy one. Keeping in touch with the mortgage situation, we at Entire House are happy to let you hear about some recent good news for those who are hoping to climb onto the property ladder. Here are the April 2013 changes to mortgage rules, which will make it easier to buy a new-build or an older home without having a big deposit. In the nutshell, this would mean that if you want to buy a new-build house, from this year on you can get a mortgage on the base of a deposit even if this is not your first house. The Treasury will add an extra 20 per cent of the house value to enable you to get a mortgage. The first five years of the loan will be interest free. After that it will attract a 1.75 per cent payment, which will rise annually by inflation plus 1 per cent. If, on the other hand, you are looking to buy an older house, and you have a deposit, So for someone able to muster a 5 per cent deposit, the Government would put in 15 per cent, to enable the homebuyer to access an 80 per cent mortgage loan. Source:–130billion-help-housebuyers–500-000-benefit-state-backed-mortgages.html#ixzz2bNiXsT8B  
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