There are lots of reasons why now is a great time for first time buyers looking for a mortgage!
1. Stamp Duty exemption
When buying a home you would normally have to pay Stamp Duty tax on any property over £125,000. Currently first time buyers are exempt for properties up to £300,000 (but not in Wales).
2. Low interest rates
Interest rates remain low, and the larger your deposit the better the mortgage deal you may be able to get.
3. Government schemes
The Government offers the Help to Buy equity loan to first time buyers and those looking to move up the property ladder who may only have a deposit of 5% to put down. Rather than taking out a mortgage for the remaining 95% of the property value, the Government lends you 20% of the property price, and so you only need a mortgage for the remaining 75%. The first five years of the Help to Buy equity loan are interest-free. At the end of the five years, you'll be charged 1.75% on the outstanding amount as interest. This fee will increase each year by the rate of inflation plus 1%. You only repay the interest, not the equity.
Another scheme is Shared Ownership, which means you don't own 100% of your home yourself. You buy just a percentage of the house so you can get on the property ladder even when you can't afford house prices in your area. You then pay rent to the housing association every month on the portion of the house that they own.The scheme details vary for London, Scotland, Wales and Northern Ireland.
4. Guarantor mortgages
There are mortgage deals available where friends or family can supply 10% of the property price to be held in a savings account instead of a deposit.
5. Lifetime ISA
Save into the Government's Lifetime ISA and you could bag a 25% bonus on top of your savings. Read our guide to find out more.
If you're ready to get started, we're ready to help you! Give us a call on 0808 292 4998 or press the button below so we can help find you the best deal and help you through the process of buying your first home.
If you’re ready to get onto the property ladder we’re ready to help you!
Why now is a good time for first time buyers