It is true that the cost of living crisis has exacerbated the uphill struggle to get on the property ladder for first time buyers. The increasing costs of filling up your car, turning on the heating and simply doing the weekly food shop has left huge numbers of people unable to save. Lenders are aware of these difficulties and can offer a variety of methods so borrowing can still take place.
In essence, the client’s friend or family member gives the bank a lump sum. This can be a top up of the clients own funds to meet the minimum deposit required, or sometimes the entire deposit.
If all of the mortgage payments are made, the helper gets their funds back in full after a qualifying period, and often whilst earning interest.
These come in various shapes and sizes. Some of the options include:
This option turns the traditional gifted deposit on its head. With high street lenders, the only option is a gifted deposit, but gifters have to confirm they do not expect to be paid back.
With a deposit booster you have options to choose from:
1. Deposit loan
2. Equity loan
Despite all the challenges facing first time buyers there are definitely options still available to them. Talking to a Mortgage Broker to discuss your individual circumstances is certainly a good first step.
At Vincent Burch Mortgage Services, the First Time Buyer team are always on hand to offer their expertise in this area. With lenders changing products and criteria frequently, they know the key questions to ask, and more importantly where to look for the best deals.
Advice that’s tailored to your own bespoke situation.
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