Over the past few years, the property market has been moving very fast and has led to significant increases in property prices. This has made it very difficult for many people to afford to buy a home. This is a problem particularly faced by first time home buyers, as although they may be able to raise a mortgage, this will often fall far short of the cost of a property.
Getting on the Property Ladder
It is, however, still possible for first time buyers to get onto the property ladder and there are actually some advantages to being a first time buyer:
- Interest rates are at their lowest for more than 30 years
- First time buyers are more appealing to sellers since they are not in a chain
- First time buyers are very much sought after by mortgage lenders
- 100% mortgage with a parent acting as a guarantor (subject to suitable security being provided for 10 years)
The government also runs various schemes to help people get on the property ladder, particularly those who are key workers. Two of these schemes are; The Key Worker Living programme which aims to help people working in front line roles for key public services to buy or rent a home and Shared Ownership, introduced to help people who cannot afford to buy a home outright -Key Worker Living programme and Shared Ownership.
We Can Help
Discount Mortgage is the right choice when chosing a mortgage broker when purchasing your first home, as we are specialists in providing mortgage advice to first time buyers.
Due to the fact Discount Mortgages have access to the entire mortgage market, we can compare the range of mortgage products available, and present you with illustrations of most of the current mortgage deals which meets your own personal needs.
Discount Mortgage clients are not limited to just mortgages designed for first time buyers. Depending on your individual circumstances we will recommend the best mortgage for you from the wide range of mortgages on the market.
Barrats Shared Equity Scheme (Only 5% depostit required)
With Barrats Shared Equity scheme, you could get on the property ladder sooner than you think.
With their Shared Equity schemes you can buy a brand new home with up to a 70% mortgage and 5% deposit and Barrats will pay the balance of up to 25% which you can pay back in up to 10 years*. Talk to Discount Mortgages today to find out how Shared Equity could work for you.
The key benefits:
- You only need a 5% deposit
- Up to 25% is a loan from them for up to 10 years. No interest is due during this period if you do not sell or transfer your home
- So you’ll only need a mortgage for up to 70% of the purchase price
How does the Shared Equity scheme work?
5% deposit payable by purchaser. Mortgage finance is arranged on up to 70% of the purchase price. The remaining balance up to 25% is a loan that you don’t have to pay back for 10 years or when you sell or transfer your home, whichever is sooner. No interest is payable during this period if you don’t sell or transfer your home.
Are any other costs involved?
Legal fees, mortgage arrangement fee, valuation fee, moving costs and stamp duty will be payable by you.
If I improve my property do I have to pass up to 25% of the increased value to Barratt Homes?
No – any increase in value due to your improvements will be deducted first.
What if the market value of my property decreases?
The repayment of the loan (up to 25%) is up to 25% of the market value at the point of resale, transfer, or the end of the 10 year period, whether this is more or less than the original purchase price.
Can I buy a property to rent out?
Sorry – the Barratt Homes Shared Equity scheme is only available for those buying a home as a place to live.
How do I apply?
You need to contact Discount Mortgages to get an agreement in principle or Barrats. If you decide to proceed with a loan, you will be asked to use one of a number of independent solicitors recommended by Barratt Homes.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Typical example: Purchase a property at £250,000, 70% (£175,000) is payable at time of purchase. 5% purchaser contribution at £12,500. If property is sold or transferred for £260,000 then 25% (£65,000) is payable to Barratt Homes. If the property is sold or transferred for £240,000 then 25% (£60,000) is payable to Barratt Homes.
How to get your free mortgage quote
You just need to enter some basic information into our Online enquiry form and we will search the entire UK mortgage market. We will present you with illustrations of the current rates available to us ensuring you get the best possible deal based on your individual circumstances. Regulated Mortgages are introduced by us to our partners for processing.
If you prefer, you can call a fully trained mortgage advisor free on 0800 298 0678. It will only take a few minutes of your time today but could save you thousands of pounds in interest payments and ensure you get the best deal possible.
There maybe a fee for mortgage advice of £399. This is only payable once your case has been accepted by a lender.
First time home buyer mortgages-click here to make an enquiry.