What initiatives are available for first time buyers?
Brian McCarthy talks us through the new developments and initiatives specifically aimed at helping first time buyers with smaller deposits.
The number of providers offering mortgages with a 10% deposit has increased, with interest rates of around 4.50% on average. This is a lot less than was being charged even six months ago and many lenders have also reduced their mortgage arrangement fees for first time buyers.
Only got 5%?
If you can only stretch to a 5% deposit, there are a number of schemes which can help. The "mi new home scheme" is a government backed scheme for the purchase of brand new homes and flats in Scotland with a purchase price of up to £250,000. Most major house builders are using the scheme and a number of lenders have agreed to support it.
How does it work?
You provide a deposit of 5% of the purchase price and the lender may provide a mortgage up to 95%; all this subject to normal criteria and affordability checks.
Shared Equity and Shared Ownership
Another interesting development is that family or friends can make a deposit with the selected lender of 10% of the purchase price of a property which is put into a deposit account which earns interest. After three years the money is returned to the family member or friend who provided it with interest. The first time buyer must put down a 5% deposit.
Want to know more?
Brian McCarthy is a Financial Planning Consultant who aims to help those who need help finding mortgage solutions. You can call him on 07956 969 859 for more information.
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The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.