WHAT YOU WISH YOU'D KNOWN ABOUT MORTGAGES
It's no secret, the government has bent over backward to ensure that young families aren't priced out of buying their own homes. But, truth be told, Things are changing. In spite of this, there are costs and one of them is the dreded 5 % deposit. There are the other bits too. Like lawyers and brokers fees as well as those legal costs too.
There could be Help though if you have a relative or friend willing to be that help and get you on the property ladder, for example, they could agree to be named on your mortgage as a guarantor. They will need to agree to make any repayments you miss and:
Use their own home as security:
Your mortgage company would have a charge on your guarantor's home, meaning they could reclaim money from them or even repossess their home if you fell too far behind on repaying your mortgage.
Use their savings as security: Your guarantor puts a lump sum into a savings account held with the mortgage provider, who use it as security. They cannot withdraw the money until you have paid off a certain percentage of your mortgage. Of course if you get
Here is everything you need to know about getting a guarantor mortgage.
New build developer loans
Property developers sometimes offer to loan you enough for a deposit when you buy a new home they have built.
For example, the housing developer may lend you 20% of the property value and ask to be repaid in 15 years.
You will need to be able to afford your mortgage repayments and to pay off the property developer's loan as well.
Help For Young Families is fighting the impact of wage poverty amongst NHS contractors employees working in education and a host of others help for young . Check to see if you're eligible
Other mortgage options
If you are unable to use the above options or they do not suit your circumstances, there are several other types of mortgage for first-time buyers.
They require a deposit, but this is usually smaller than standard mortgages.
Help to buy
Help to Buy could make it easier for you to get a mortgage with a small deposit. It provides an equity loan that lets you borrow money for a deposit interest-free for five years (up to 20% of the property's value or 40% in London).
You then put down a further 5% deposit from your own money and get a mortgage for the rest of the price.
Here is everything you need to know about how Help to Buy works
Shared Ownership mortgages allow you to buy a percentage of a property, usually between 25% and 75%. The rest is owned by your local authority or a housing developer, and you will pay rent on the percentage of the property they own. Check to see it you're eligible to apply for Help For Young Families Home Deposit Grant.