Mortgage Options

Lippyx

Hi,

My partner and I want to buy our first home. Problem is we have very little deposit. What options do we have? Renting is a no no really.

What mortgages are out there? 95% ones available? We may be able to borrow a small deposit from parents, but no chance in getting 20% or more together!

Any advise is appreciated!

Lx

kingstreet

There are one or two options at 95%.

If you are looking at newbuild, there's the Newbuy option and shared ownership can be done with just 5% deposit.

There's also Firstbuy, shared equity option, where you put down 5% deposit and get an interest-free (for five years) loan to supplement your deposit to get a mortgage of around 75%.

There are also the budget announced changes which may be of help when the filter through.

As well as 5% deposit, don't forget you'll need £2,000 to cover fees and 1% of the purchase price for stamp duty if buying over £125k. More if over £250k.

Lippyx

How does the guarantor method work? Could this also be an option?

kingstreet

A guarantor won't help you with no deposit. That's for those who may be a little short on their maximum borrowing and the guarantor gives them a bit extra.

The family-assist products involve a family member putting up their property or their savings as security for a low, or even no, deposit but that means putting family members' assets at risk if you default.