First Time Buyers

The struggles of first-time buyers are well known. The soaring house-price-to-earnings ratios and what some call a ‘chronic shortage’ of affordable housing, means that young people have to wait longer and longer to own their own homes.

However, the good news is that certain lenders, offer specialist mortgages designed to help cash-strapped first-timers, while some mainstream mortgage deals are also still available to people with just 5% to put down.

Here at the Mortgage Club we offer support to these lenders as we want to increase more lending for frustrated tenants and “wannabe” homeowners, so we have put together some useful information about this market sector:

First Time Buyers (FTB) News:

The Bank of Mum and Dad’ Grows to become a £6.5bn UK mortgage lender – on a par with the 9th largest UK lender

The Bank of Mum and Dad continues to grow in importance in helping young people get on, or move up the property ladder. Legal & General’s new research on the “Bank of Mum and Dad”, underscores the huge role of families in an over-priced, under-supplied housing market.

The research reveals how parents, family and friends will lend over £6.5 billion in 2017, up from £5bn in 2016, providing deposits for over 298,000 mortgages, and helping others to purchase homes worth £75 billion.

The Bank of Mum and Dad (BOMAD) is now on a par with the 9th largest mortgage lender in the UK (up from no.10 last year) and will be involved in more than a quarter (26%) of all property transactions that take place in the UK market this year.

Read the article

Government Help to Buy Schemes:

You can learn more about government schemes here.

Guarantor Mortgages:

Key benefits of Guarantor Mortgages:

  • Full and Limited liability options available.
  • Low deposit required from 15% (maximum LTV 85%).
  • Variety of products with arrangement fee options.
  • 2 and 3 year fixed and 2 year tracker options available.
  • Annual 20% capital repayment allowance without incurring Early Repayment Charges.
  • Also available for remortgages.

Key lenders in this market:

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