With the cost of living on the rise what can be done to help first time buyers?

The cost of living crisis has indeed 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 have 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.

Friends and family support is offered by many lenders

In essence, the client’s friend or family member gives the bank a lump sum. This can be a top-up of the client's 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.

Family Mortgages

These come in various shapes and sizes. Some of the options include:

  • Using the family savings as security to reduce the amount of the mortgage on which interest is paid
  • Use family property as security

Deposit booster

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
3. Gift

Despite all the challenges facing first-time buyers, there are definitely options still available to them. Talking to a Mortgage Broker to discuss your 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.

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Contact us today for personal mortgage advice and a quote, call 01603 340644 or email [email protected]

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