Getting a Foot on The Property Ladder

28th Mar, 2019

Man and Woman shake hands in agreement

The start is usually the hardest part of any journey. Normally it’s finding the energy to get off the sofa but sometimes it’s a little more complicated. Sometimes it’s a matter of everything falling in to place and several strokes of good fortune. Case in point: getting a foot on the property ladder.

Buying a house at any stage of life is not the easiest thing in the world. It can be scary, it can be complicated, it can be long and tiresome and, above all else, it can seem impossible. But doing it for the first time? That offers a host of other difficulties altogether.

It doesn’t have to be difficult, though, as there is a wide range of first time buyer-appropriate mortgages available.

95% Mortgage
The increasingly more popular option for first time buyers, banks and lenders can offer borrowers up to 95% of the mortgage in exchange for a 5% deposit. This allows for purchasers to get their foot on the property ladder quicker than ever.

There are a few things to consider with a 95% mortgage, however. As you are leaving a deposit as low as 5%, the interest rates will most likely be a bit higher. The higher your deposit, the better your interest rate.

Shared Ownership
Shared Ownership is a great opportunity for first time buyers who want to own a house but cannot afford to for whatever reason.

Confusingly, shared ownership doesn’t actually meaning sharing the ownership but rather owning shares of the property. You then pay rent on the share you own to a housing association.

Why is this a great option for first time buyers? The purchaser would only need a mortgage for the share that they are purchasing which makes the initial deposit significantly lower.

Help To Buy
Somewhat similar to the 95% mortgage, Help To Buy schemes are for buyers who can handle a mortgage but can’t find an affordable property.

As an example: after a 5% deposit, the Government covers up to 40% of the cost, meaning your mortgage will only have to cover the remaining 55%.

There are a few points to consider if Help To Buy is your option:

• Live in the UK
• Intend to live in the home
• Be the only home you own
• Be purchased with a mortgage

Getting a foot on the property ladder isn’t easy but it’s much less difficult than you may have first thought. There are always options available for just about anyone looking to start their journey so take your first step today.

Find out what the Personal Agent currently has on offer here or give us a call on 01372 745 850 today.

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