ADVICE
Simon Scott is Assistant Director, Commercial & Property Marketing for Origin Housing and has been helping first time buyers on to the property ladder for more than 20 years. One of the industry’s most influential sales and marketing operatives, Simon has worked for some of the UK’s largest housing associations. He places an emphasis on exceptional customer service, and is a true expert in his field
Q
I have been saving for a few years and I am now ready to purchase my own home in London, but I have heard that interest rates have increased. What does this mean for first time buyers like me, and should I be concerned?
A
As a prospective first time buyer, you are right to keep your eye on the news. In December 2021, for the first time in three years, the Bank of England raised interest rates, increasing them from 0.1% to 0.25%. So, why does this matter to first time buyers like yourself? Put simply, the interest rate is the fee you pay when you borrow money, for example when you take out a mortgage. In the UK, the Bank of England sets the national interest rate. Individual commercial lenders, such as banks and building societies, use this rate as a guide when setting their own interest rates on their mortgage products. The good news is, even with this increase, rates are still extremely low, compared to what they have been historically. Also, keep in mind that, as this announcement only came out at the end of last year, it will take a while for the impact to trickle down the commercial lenders. As a first time buyer, it’s important to look at all the options open to you – such as shared ownership, which is a part-buy/ part-rent scheme. Shared ownership allows eligible first time buyers to buy a percentage share of a property, usually between 25%-75%, while renting the share you do not own at a subsidised rent level. Shared ownership can be a great option if you are concerned about interest rate rises. You will have a smaller mortgage, as you only need a mortgage for the proportion you own. Therefore, if rates rise again, you may feel the impact less acutely when it comes to your monthly outgoings. While there are an increasing number of shared ownership homes on the market in London, demand is high, so homes sell fast. It’s always worth considering buying a home in a major regeneration area, such
as Harrow, particularly if you are looking to buy in London. A regeneration area is an area where an organisation, usually the local authority, is investing in new facilities and improvements in the area. Buying early in a regeneration area can be a great investment. If you’re interested in shared ownership, I would always advise you to keep an eye on developments you like and register your interest early to secure one of the first viewings. For example, here at Origin Housing we are holding a pre-launch event for a flagship development in Harrow, at Harrow
Simon Scott, Assistant Director, Commercial & Property Marketing, Origin Housing
and Wealdstone Heights – allowing eligible buyers to secure their dream home early. Registering your interest early is especially important with smaller developments and in property hotspots, such as central London. At Origin’s development Camley Street, which is located right on the Regent’s Canal near Kings Cross and Camden, purchasers can buy 25% of a one bedroom apartment for £150,000 through shared ownership. With a minimum deposit of £7,500, it means this fantastic central Zone 1 location is suddenly on the cards for first time buyers.
FROM
Located in the heart of a popular north London neighbourhood, Origin is launching a brand new collection of 81 contemporary one and two bedroom shared ownership apartments at Harrow and Wealdstone Heights. The impressive development features two dramatic towers, finished in high-end Portuguese limestone. At 18 stories at its tallest, Harrow and Wealdstone Heights’ modern, open-plan apartments will deliver Origin’s exceptional standard of finish, with every home offering access to a private Harrow and balcony – many with panoramic views across Wealdstone Heights London’s skyline. A communal roof terrace will create a sense of community, and the development will be set among landscaped green spaces, with play areas and mature planting. Harrow is currently undergoing a multi-million pound regeneration scheme, which will deliver a wealth of new cultural facilities, commercial premises and green spaces. Origin’s new shared ownership apartments are ideally situated for new purchasers to benefit from the vast investment into the local area. Perfect for commuters, the development is located just a few minutes’ walk from Harrow and Wealdstone station which is serviced by underground, Overground and mainline trains. Residents will benefit from easy connections into central London, with journeys to Euston taking just 15 minutes.
£TBC
You can register your interest ahead of the new launch at originhousingsales.co.uk/harrowwealdstone-heights
20 First Time Buyer February/March June/July 2018 2022
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