THE dream of owning a home is becoming increasingly remote for millions of young Brits. And that's not surprising when you think first-time buyers now have to fork out nearly £50,000 for a deposit to get their foot on the first rung of the property ladder. But what if there was a way wannabe buyers could buy their own home without having to scrimp and save for that deposit? A decade ago, borrowers were able to take advantage of lots offers that meant they didn't need to stump up any money before getting their mortgage. One report says that building societies and lenders should bring them back for first-time buyers to ease the burden on parents. We've seen a few of these mortgages reappear on the market but are they really worth looking at if you're struggling to get the funds together for a deposit? What are no deposit mortgages? When you're mortgage shopping, you'll see something called Loan to Value (LTV). This is simply the percentage amount of the property that is … [Read more...] about What is a 100 per cent mortgage loan? Are they good for first-time buyers and can you apply if you have bad credit?
Government deals for first time buyers
FANCY getting on the property ladder without having to put down a deposit? Of course you do, it's a no brainer. A range of 100 per cent mortgages that are now available to first-time buyers means that there's no need for a cash deposit when buying a property, shaving years off the time it takes to become a homeowner. Normally, house buyers will need a down payment of at least 5 per cent of the property price before taking out a mortgage but a 100 per cent loan will let you borrow the total value of the home. The Post Office's Family Link will let you take out a 90 per cent loan to value (LTV) mortgage, with the 10 per cent deposit secured against your parent's home, providing that they're mortgage-free. Tipton & Coseley offer a similar deal, but you'll need to secure 20 per cent of your new home against a family member's property. Barclays three-year fixed mortgage will lend you the cash if your parents are willing to stump up 10 per cent of the purchase price. The money is held … [Read more...] about The £120k homes that single first-time buyers can afford to purchase on their own and without a deposit
FIRST-TIME buyers Heather and Ed saved up the £13,000 they needed to buy their first home by switching from Asda to Aldi and ditching holidays abroad. Heather Townend, aged 33, and Ed Gledhill, aged 32, bought their two-bed terraced house in Golcar, a village just outside Huddersfield in Yorkshire, in May last year. The property cost £110,000 and the couple were able to knock down the asking price from £120,000. They've spent the last 18 months painting it, decorating it, and filling it with furniture - all while planning for their wedding next May – and the birth of a baby (due mid-November). In total, it took the couple around 19 months to save the £13,000 they had set themselves as a target to buy their first home. They achieved this by switching to budget supermarket Aldi, cutting out big holidays, and making savings on rent by moving back in with Ed’s parents. This meant Heather, who works in insurance, and Ed, who works as a senior sales … [Read more...] about First-time buyers saved £13k deposit by ditching Asda for Aldi and cutting out holidays
SAVING to buy your first home is no mean feat – and Kimberley Burton would definitely agree. But the first timer is not afraid of hard work, and took on two additional jobs on top of her day job so she could build a fund of £27,000. Kimberley Burton, 28, works full-time as a dietitian at a hospital in Nottingham, but set up a a mobile beauty business in her spare time, training to specialise in eyebrows and eyelashes, working on evenings and weekends. Like many first-time buyers Kimberley lived with her parents while saving to buy a home. She paid just £80 a month towards living costs - but even so, she puts down saving up £27 to her top money saving skills, such as using Topcashback to shop earn cashback on everyday items. She was also very strict with her spending, opting for tap water when she went ate out, and always opted for a two-for-one meal deal, and only got her hair cut once every two years. It took Kimberley three years to save £27,000, … [Read more...] about First-time buyer saved £27k deposit for three-bed house by cycling to work and ordering tap water at restaurants
MORE first-time buyers in London, Greater Manchester and West Midlands have used the Help to Buy equity loan to buy a property than anywhere else in England. The highest number of buyers relying on the loan were in London, with 12,206 homes bought using the scheme since it launched in 2013, compared to just 187 in the Isle of Wight - the county where potential homeowners are least likely to use the help. The disheartening stats come as it's revealed that four in 10 Brits wouldn't be able to buy one of the cheapest homes in their area, even with a 10 per cent deposit. Between April 2013 and March 2018, 169,102 first-time buyers have used the Help to Buy equity loan. The government will lend you up to 20 per cent of the property value - up to 40 per cent in London - while you take out a mortgage for the rest of the cost. It's interest-free for the first five years and allows new homeowners to buy a property with a 5 per cent deposit, but it's been slammed by critics for pushing up house … [Read more...] about The counties where first-time buyers most need a Help to Buy loan revealed – how does your area compare?