Upon completion of your purchase, will this be the only property you own and will it be your main residence? If the value of the property falls below the amount of the outstanding loan, you may find it difficult to repay the mortgage if you sell the property It is important to consider the amount of deposit you are able to put in yourself. Lower interest rates may be available to you should you be able to provide a larger deposit.
Our Mortgage Advisors are available 7 days a week over the phone. Back to top Back to top Back to top. The Reveller. The Optimist. ES Best. ES Mag. Follow us:. Password Please enter a valid password. Submit Submit. The offer is solely for first-time buyers and only applies to new-build properties sold by a Help to Buy registered homebuilder. There are different rules for this scheme in Scotland and Wales. Shared Ownership is another option.
This is known as staircasing. Different rules apply for shared ownership in Scotland and Northern Ireland. The long-term view is to ring-fence a pool of cheaper properties for those struggling to get on the local property ladder. The government says that 10, homes a year could be ultimately sold under the scheme. Most are only likely to be for first-time buyers.
And borrowers will need the financial backing of usually a family member or very good friend to secure a deal. The property is still legally owned by the borrower. These mortgages usually work in one of two ways. A friend or relative becomes a guarantor, securing their home against the loan. If a borrower defaults, guarantors may become responsible for repayments. Alternatively, a friend or family member uses savings to guarantee the mortgage, by holding the money in a special account for a specified length of time.
Barclays Family Springboard mortgage is one example of this arrangement. A mortgage broker will guide you through the pros and cons. However, many first-time buyers are drawn to the security that a fixed rate offers, as it makes it easier to budget. The cost of fixed rate mortgages is currently also the cheapest on record. Whether you opt for fixed or variable rate deal, be sure to factor in set-up costs arrangement fees as well as any tie-ins during which time you will pay an expensive penalty to leave.
However, as your choice of lenders will be limited, always seek the expertise of a mortgage broker. This is more preferable scenario, not only because lower LTVs translate into lower mortgage rates, but because you will be able to compare deals from a much greater number of lenders.
The stamp duty holiday in England and Northern Ireland expired at the end of September Trussle is a 5-star Trustpilot rated online mortgage adviser that can help you find the right mortgage - and do all the hard work with the lender to secure it. Properties can be expensive and the combined cost of the mortgage, rent and service charges can quickly add up. Financial Services Limited. Financial Services Limited is a wholly-owned subsidiary of Which? Limited and part of the Which? Money Compare is a trading name of Which?
Money Compare content is hosted by Which? Limited on behalf of Which? Mortgage calculators. Compare Mortgages. In this article. Calculate mortgage costs. Use these calculators to see if you're financially ready to buy. How much can I borrow: mortgage calculator Mortgage repayment calculator Stamp duty calculator.
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