Estate Agent Becomes First To Offer Interest Free Loans
We reported recently on how star of the TV show Dragon’s Den, James Caan, was to start offering interest free loans to individuals who were looking to get themselves on to the property ladder as a first time buyer, in an attempt to provide a boost to the struggling housing and home owner loan markets.
Mr Caan has launched the service in connection with Hitachi Capital, with an initial fund of £1 billion, which is to be used to offer the interest free loans to potential buyers who would otherwise be unlikely to be able to buy the house they want.
Parson’s Estate Agents in East Anglia have become the first company to start offering the loans, which are being provided by Look4aproperty.com, and it is likely that several more firms will follow shortly. The interest free loans can be used to bridge the gap between the maximum loan to value offered by lenders and the purchase price of the property, as well as providing funding for things like valuation costs, Hips, legal costs and stamp duty.
The maximum amount of loan available will be £100,000 and it will be repayable over a two or three year period and the loans are available to first time buyers only.
Kevin Parson of Parson’s Estate Agent said “This deal offers buyers and sellers in East Anglia the chance to get moving that they simply didn’t have before. With the end of the stamp duty holiday fast approaching, 2010 is going to get even tougher for people who want to move.”
James Caan said “We are delighted to start rolling out our money product and to get the cheques written. This product will help buyers and sellers all over the UK to finally move into the home they want and that will help stimulate our struggling economy.”
