Much has occurred in recent years to support the First-Time Buyer such as; a low interest rate environment, the Bank of Mum & Dad, and various government schemes.
There are numerous government schemes across the UK to assist first-time buyers. Generally, they open up the opportunity to secure a property for possibly a smaller deposit (around 5%), or may offer a discounted purchase price. Understandably, there are various rules regarding eligibility, with certain strings attached.
Read our blog on the 10 common mistakes First Time Buyers make
Additionally, a less complicated approach may be to try to access some of the higher loan-to-value deals available in the wider marketplace, assuming the borrower can meet the deposit and affordability criteria.
Elsewhere, there are other types of schemes that could be considered. One example is Shared Ownership (if applicable), should you be unable to afford 100% of a home. In which case, you could buy a share of its value (between 25-75%) and pay rent on the remaining share. Later on, if you can afford it, you could buy a bigger share.
With the first Bank Rate rise in over 10 years, the hunt for a suitable deal may become harder should lenders start to pull back from offering the lower deposit requirement deals, or start upping their interest rates.
Contact one of our advisers to find out more about how we can help you with your first mortgage or download our free first time buyer guide, which provides more information on the different types of mortgage, how much you could borrow, what the typical costs associated with buying a new home are likely to be and some key advice when it actually comes to applying for a mortgage. If you are thinking of saving for a property read our Help to Buy ISA factsheet.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.