0800 358 5068

 

Thanks to the boom in house prices and rising interest rates, life for first time buyers has seldom been harder.

However, although it may seem impossible for many young people to get onto the housing ladder, there are a number of innovative mortgages that offer hope where previously there would have been none.

Guarantor schemes that allow parents to act as security for the loan and variations on this theme that enable friends and family to help out; 100% mortgages or even loans for up to 130% of the purchase price are all now available at competitive rates from mainstream lenders.

There are even lenders that will consider far greater income multiples than are normally granted if you are one of a number of listed professionals because the lender can see that there is plenty of scope for your income to grow as your career progresses.

However, first-time buyers are still faced with other obstacles such as a Higher Lending Charge a kind of insurance premium to protect the lender against potential losses for mortgages of a high percentage of the property. This must be paid by the borrower and can add thousands of pounds to the costs of getting a mortgage.

Young buyers may also have problems because their credit history is not sufficient for a lender to make a judgement about their risk-worthiness.

All these problems can be overcome with the advice of an expert broker who can steer buyers to tailored deals that get round most, if not all, of the added expense.

For advice on deals suitable for first-time buyers, speak to one of our expert advisers on 0800 358 5068.