FTB Mortgage Deals

MoneyMummy_2

Hi, this is for my neice. She is buying her first home with her fiancee. They are buying on a scheme where they buy 75% of the property, so will be borrowing £95K. The builder's mortgage broker has found them a 2 year fixed rate deal which is 4.89%. I thought this sounded quite high. I've been shopping round for myself too, and found lower rates for this period, though I do have 25% deposit. Could they do better than this? If the builder is putting 25% down (they pay back when they sell), does this techically count as them having 25% deposit? Just don't want to see them do the wrong thing and they are sorting it out tomorrow. I can't go with them to broker as I have 2 tinies, so just trying to do a quicky bit of research for them now.

dimbo61

Are they putting any deposit in themselves ?

MoneyMummy_2

Hi, no. It's one of these deals where they are just buying 75% of the purchase price, and the builder stumps up the other 25%, which is paid back later on. I can find lots of better rates on-line but not sure if they are eligible with this type of purchase.

Berkshiregirl

I think there's only a few lenders that recognise this sort of deal - Halifax being one (at least it was) - so you're a bit stuck as you can't get the best rates, only the rates they'll offer you.

The choice of lenders and products would increase if your niece was putting in a deposit of her own as well.