Letting agents in London stand to get more work
By AdFeatures | Tuesday, December 04, 2012, 09:33
London is an expensive place to live, but it’s the price of living in a desirable city. However, those that hope to move permanently to London may find it difficult to buy a home as the Financial Services Authority (FSA) has just tightened the rules regarded mortgages.
The new regulations enforced by the FSA are designed to bring the haphazard borrowing, which contributed to the recent financial crisis, to an end. However, the new regulations will also force new customers to face tougher guidelines when applying for a loan.
As a result of this change in regulations, Hamptons Letting agents in London stand to see an influx of visits as potential first time buyers are going to find it increasingly difficult to obtain the loan they need to purchase a home.
The new regulations won’t only affect first-time buyers, but they will also affect buyers around the age of 55. Lenders will be required to make sure the borrower has savings in place throughout the term of the loan, while also proving that the loan can be repaid before their 75th birthday.
A spokesman for the Council of Mortgage Lenders said to The Telegraph: “The FSA has already trailed the broad outline of the forthcoming regulatory changes for a long time, and the mortgage market has to a great extent already absorbed and planned for them. On the one hand, this means that consumers are unlikely to suffer significant additional impacts as a result of the changes.”
The regulations will make it considerably difficult for potential buyers to acquire the help they need, which will force more people into renting longer than they would otherwise have wanted.
However, fortunately for renters there are lovely places, and people, to turn to, such as the experts at Hamptons International. Expert letting agents will be able to assist would-be first-time buyers in finding a let that not only provides renters with all of the comforts necessary, but is within a price range that will enable them to save until they’re capable of obtaining the loan.
These new regulations don’t have to be viewed in a completely negative light. Renters can really benefit from the extra time to save for their house.
Whether these new loan regulations will help curb the rampant borrowing from recent years, time will tell, but what it will do is provide a generation of home buyers with adequate time to consider whether or not they are making the right decision, which when making a large purchase is the best thing you can do.