With house prices continuing to rise and the ongoing impact the coronavirus pandemic is having on jobs it’s a challenging time to be trying to get your first step on the property ladder.
Last year we saw some lenders withdrawing mortgage deals aimed at first-time buyers. But there are signs that there may be more mortgage deals available to those looking to buy their first home next year as well-known mortgage lenders are starting to re-enter the market. Moneyfacts.co.uk recently reported that first-time buyers with a deposit of 10% or less had the choice of around 130 mortgage deals. Although this may seem like a lot, if you are planning on buying your first home you should be aware that some of these deals are only available as a guarantor mortgage, while others are restricted to those living within specific areas.
If you are a first-time buyer struggling to get a mortgage but do not want to use a guarantor, you can consider a Help to Buy Loan instead. In November 2020 the government announced it is replacing the existing Help to Buy scheme with its new Help to Buy Equity Loan (2021-2023) on the 1 April 2021. Although the new scheme does not replace the existing scheme until April, first-time buyers who are buying a new home can begin using the scheme from the 16 December 2020 – but you cannot get the keys and move in until April next year.
Another scheme available to those in England is the shared ownership scheme. This enables you to purchase a minimum of 25% up to a maximum of 100% of a property from a housing association. Under this scheme you will pay rent on the percentage (if any) that is still owned by the housing association.
For any scheme such as this It is always worth using a mortgage broker like Yellow Brick Mortgages which can mean significant savings not only financially but also saves you precious time alongside ensuring the right outcomes for you. Yellow Brick Mortgages will be not only be able to highlight the best deals available to you, but will also be able to guide you through the home buying process alongside the mortgage application, ensuring you have all the documents required for the application.
They are highly regarded on Trust Pilot with over 1000 5 Star reviews and likewise to ourselves place a priority on your experience with them to ensure the smoothest possible process. YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
