Getting a foot on the ladder...
The new Help to Buy 2 initiative is now up and running! A number of lenders have now signed up to the scheme and it means that you can buy any residential property (not just a newly built house) with only a 5% deposit. There are also a number of other initiatives available to help first time buyers. Some of these are regionally based whilst others operate on a national level. The most common are Shared Ownership or Shared Equity arrangements with funding offered by builders and/or the government to help first time buyers get a start on the property ladder, but the new Help to Buy 2 scheme is by far the most attractive for the majority of purchasers. Please phone or email us from the Contact Us page if you would like further information or to see if you qualify.
Some lenders also have schemes that recognise first time buyers need additional help from parents or other family members to buy their first home. Guarantor mortgages and even a 100% mortgage scheme are available if you meet the criteria.
The message coming out from house builders, government and lenders alike is that they all recognise that first time buyers are the life blood of the property market and, after several years of making it very hard for first time buyers to obtain the required levels of mortgage finance, there are now signs that those first time buyers who are serious about wanting to buy a home will now be able to get the mortgage they need. You will still need a deposit of at least 5% in most cases – but that could be a gift from parents or even a vendor gifted deposit in some cases. Of course, you will need to be able to prove your income and satisfy the lender that the proposed mortgage is affordable for you; and it is also preferable that you have had an excellent credit history for at least the last three years (no recent late payments on credit cards or loans and no defaults or county court judgements on your credit file within this period). However, some lenders are now looking more sympathetically at applicants with historical adverse credit and only a small deposit, so even if you have been refused by one lender it is worth giving us a call to see if we can help.
If you do not have a perfect recent credit profile, do not despair! We also have access to lenders who are prepared to consider people with late payment history, defaults and/or CCJs. However, please be aware that you will need a deposit of between 15% and 25% of the purchase price, depending on the severity of your adverse credit, and the interest rates charged are likely to be higher. A representative APR for Adverse Credit mortgages is 6% as at 10th November 2015.
How we can help.
If you are a potential first time buyer please give us a ring. We will talk you through the home buying process, explain all the various stages, outline the fees and charges that you will incur along the way and be able to obtain an agreement in principle for you from a lender that will enable you to go looking for your first home safe in the knowledge that you have already had your mortgage agreed.
Please call us to discuss your requirements or complete the enquiry form and we will contact you.