Many people know how hard it is to save up for a deposit, especially while renting! With this being one of the main reasons renters can’t afford to get onto the property ladder. The new 5K Deposit mortgage product has been announced recently and it allows for a much smaller deposit giving many more people the opportunity to get onto the housing ladder years before they thought they would!
Who is Eligible:
- First Time Buyers Only
- £5000 is the minimum deposit
- Maximum property value of £500,000
- Maximum loan value of 99%
- Flats and New build houses not applicable
- Not available in Northern Ireland
- Must be 70 or under at the end of your planned mortgage term
Joint Applicants:
- At least one applicant needs to be a first-time buyer
- No applicants can currently own a property
How The 5K Mortgage Works
As long as you have £5000 saved for a deposit, you are a first-time buyer and meet the lending criteria you could get onto the housing ladder a lot sooner than if you need a bigger deposit! Assuming you meet the lending criteria you could borrow between £95,001 and £495,000.
Things To Think About:
With this mortgage you won’t be able to use it to buy a flat or a new build house and future mortgage deals could be harder to find.
This is a great scheme for anyone who’s struggling to save for a deposit and meets the criteria but of course, it’s important you look at your options and get advice on what could be right for you.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
