Being a first time buyer is not easy and we understand that taking the first step on the property ladder can be daunting. However, we will be with you every step of the way.
How Much Deposit Do I Need?
A person is generally classified as a first time buyer if they’re purchasing their only or main residence and have never owned a freehold or have a leasehold interest in a residential property in the UK or abroad.
Before looking at properties, you need to save a deposit or a family member can provide you with the deposit.
Generally, you need to try to save at least 5% to 15% of the cost of the home you would like. However, the larger the deposit, the lower the rate of interest will be.
For example, if you want to buy a home costing £150,000, you’ll need to save at least £7,500 (5%)
Guarantor and Parental Help Mortgages
Bank of Mum & Dad
Many parents and grandparents want to give their child a hand onto the property ladder and are in a position to do so. With family members willing to take on some of the risk of lending to a first time buyer, some mortgage lenders are prepared to lend more and at a better interest rate.
With an increasing number of guarantor mortgages available on the market, Simply Mortgages can work with you to find the most suitable product for you and your family.
Joint Borrower, Sole Proprietor
The joint borrower sole proprietor option works differently in that your parent contributes to the mortgage without being a co-owner. This can be on a temporary basis until you’re able to cover the payments entirely.
This means your parent could help you to potentially buy a bigger and more desirable home without them actually being an owner.
A number of lenders offer joint borrower sole proprietor mortgages, including Barclys and Metro Bank, as well as smaller lenders Building Societies.