First time buyers
The mortgage monkey can help you "Climb onto the Property Ladder"
If you're looking for your first home and want to get your foot on that first rung of the property ladder at last, you'll already know just how difficult that can be.
House price increases have outpaced wage rises to such an extent that in 80% of British towns, property prices are out of reach of most first-time buyers.
Even though your income limits how much you can borrow, a mortgage monkey Mortgage Advisor can help you find a way to buy your first home.
No deposit?
If you don't have money for a deposit, it's possible to get a 100% mortgage from some lenders. In fact, a few offer even more, with loans up to 125% of the property's value. In these cases, only part of the loan is secured against the property (typically 95%), with the remainder treated as an unsecured loan. For loans where the amount borrowed is a high proportion of the property's value, many lenders will require payment of a Higher Lending Charge (HLC).
Some lenders will provide ‘professional’ mortgages, lending 100% without the requirement for an HLC, to members of certain professions - doctors, dentists, vets, accountants and solicitors.
Also available are mortgages specifically for recent graduates, with offerings from some lenders to borrow up to 102% of property value for those who have graduated from a British university.
Guarantors
Many lenders offer mortgages for first-time buyers if they have a guarantor. This is someone who takes responsibility for repaying the mortgage if the borrower is unable to do so. In this case a guarantor's income must be enough to service all or part of the loan (as well as outgoings on their own home), depending on the lender's conditions. Due to the nature of the undertaking, guarantors tend to be parents or close family members of the borrower
Lenders have developed and redefined guarantor mortgages in recent times so that a parent can now act as a guarantor on the mortgage without the requirement of being placed on the mortgage deed, thus avoiding potential equity transfer, tax and inheritance issues in later years.
Lenders have recognised the problems facing young would-be first-time buyers, and there is a wide variety of different schemes available to suit a range of circumstances.
