As a first time buyer there are a few schemes that you could be entitled to. Knowing what these are can really help you with your home buying journey and get you on the ladder.
Track Record Mortgage
The track record mortgage is a 100% mortgage with the option to use a deposit up to 5%. It limits your monthly mortgage repayments to the amount you usually would pay for rent.
This mortgage helps buyers who are currently renting and is based on your track record. The lender will look at your previous 12 months of rent payments to work out what you can afford to borrow. To qualify for this scheme you will need to evidence that you have paid bills in full and on time. There is no completion fee and it’s a fixed rate mortgage for 5 years. Eligibility criteria applies.
First Homes Scheme
As a first time buyer you can buy a home for 30%-50% less than its market price with this scheme. This is a great scheme but when you sell, you pay it forward by giving the same discount to the next buyer. Eligibility criteria applies.
Shared Ownership
Shared ownership is a great way to get onto the housing ladder as it requires a smaller deposit and has the option to buy more shares if you can in the future. This is called stair casing. Doing this makes it easier for you and can fully own the home over time. You will need to pay rent for the rest of the property you don’t own on top of your mortgage payments. This is for your share and service charges for communal areas. Eligibility criteria applies.
5k Mortgage
Many people know how hard it is to save up for a deposit, especially while renting! This mortgage allows for a much smaller deposit therefore, giving many more people the opportunity to get onto the housing ladder years before they thought they would! The scheme has a maximum loan value of 99% and maximum property value of £500,000.
If you’re a first time buyer, have a minimum of £5000 saved for a deposit and want to buy a home it’s worth getting in touch to see if you’re eligible for this mortgage.
Conclusion
These schemes all offer great options to a first time buyer. It’s important you talk to your mortgage advisor and see what’s available to you! Get advice so you know which scheme available could be right for your individual circumstances and requirements.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.