The housing market is a tough nut to crack for first-time buyers, with rising house prices requiring bigger deposits, and tough affordability criteria making it difficult to secure a mortgage.
Despite this, the Times revealed this weekend that there are now almost 280 mortgage products available to those with just a 5% deposit, which is a huge increase compared to 2012, when there were just 59.
The Observer took a look at an interesting way for first timers to get their foot on the ladder, by becoming a student landlord. There are a couple of building societies that offer a ‘Buy for Uni’ mortgage, allowing a student to become a homeowner and earn rental income by letting out rooms, as long as close relatives provide security using their own property. Experts urged family members to understand the implications for doing this, and the fact that rates are higher for niche products such as this.
Elsewhere in the buy-to-let market, the Mail on Sunday reported on the pressures faced by landlords, and the importance of keeping costs as low as possible. With a drop in average fixed rates, now is an excellent time for investors to take advantage of the competitive deals available on the market.
What the papers said about options for first-time buyers and landlords