First time mortgage borrowers are new to the mortgage application process and it can seem extremely daunting to them.
The terminology alone can be very confusing, never mind knowing whether or not they are getting the best possible mortgage deal available to them.
Often first time buyers start out on their journey with some apathy, believing their mortgage application won’t be accepted. This could be due to their credit rating, income or other factors.
The truth is there are a vast range of different types or mortgages and Government schemes available for first time buyers.
Help for First Time Buyers
These are just some of the help to buy mortgage schemes created to help first time buyers take their first step onto the property ladder.
It’s important to seek qualified and regulated mortgage advice before taking to step to apply for these schemes. This is to ensure it is the correct solution and necessary to resolve any hurdles.
Help to Buy – ISA: The government will boost first time buyers savings by 25% should they be saving for a mortgage deposit. This will help speed up the process of purchasing their first home.
Help to Buy Shared Ownership: If a first time buyer is unable to be accepted for a mortgage on the basis they will purchase 100% of it, they may be suitable for this scheme. The borrower could purchase between 25% and 75% of the home and pay rent on the remaining amount.
Equity Loan: The Government will lend 20% of the value of a new build property, leaving only a 5% deposit to be paid, along with a 75% mortgage.
LIFT (Low-cost Initiative for First-Time Buyers): This is only available in Scotland. The Scottish government will purchase between 10% to 40% of a property the borrower chooses, which means they don’t need to be accepted for a 100% mortgage.
Get Free Mortgage Advice
There is now free mortgage advice available to first time buyers from qualified, experienced mortgage advisers.
If you or someone you know would like to find out exactly what mortgage options are available then contact a mortgage adviser today.
Both Mortgage Advice Scotland and NI Mortgage Advice offer a free, no obligation service.