With the UK property market coming back to life following a relaxation of lockdown rules, First Time Buyers have been the hardest hit as nearly all lenders have pulled out of the high Loan to Value space. Not great news for this demographic of potential homeowners as they tend to only have circa 5% deposit and maybe up to 10% at a push and sometimes at the expense of bank of Mum and Dad.
95% lending is simply not currently available under traditional lending methods and so improvisation is the key. Shared Ownership may be a solution, and this is where applicants have a blend of ownership and rent and normally requires at least a 5% deposit. This in itself allows first time buyers to have a chance of home ownership with a relatively small deposit. Similarly, Help to Buy schemes also allows this demographic of potential homeowners to have a chance of home ownership with a relatively small deposit although the schemes are quite different.
In these unprecedented times, an intermediary only lender (not available via the High Street), has recognised the plight of first time buyers and has launched a product that will allow Shared Ownership to be possible without the need for a deposit.
To find out which product and lender may be most suitable for you, and to see if we can help, book an appointment for one of our advisers to call either by
telephone or video conference call
There are some great product features contained within this offering such as:
- 100% staircasing possible (simply put, this means that over time you are allowed, subject to affordability, the right to purchase 100% of the property and generally this is done gradually in phases)
- Furloughed income being acceptable for affordability purposes
- 1-year self-employed earnings may be considered and will be subject to underwriting
- Any product fees may be added to the mortgage advance
- 2 and 5 year fixed rates available
For applicants with a less than perfect credit file, the following is acceptable:
- CCJ’s (County Court Judgements) 0 in 36 months
- Defaults 0 in 36 months
- Secured arrears 0 in 12 months
- No Debt Management Plans
* All CCJs & defaults must be paid prior to the application or must meet the ignore CCJ/default criteria Ignore CCJ/default criteria: registered >36 months and satisfied prior to application OR satisfied>12 months prior to application regardless of date of registration OR <£300 in total and satisfied prior to application.
* To find out more about Shared Ownership schemes, click here to visit the government website concerning affordable housing.
If wish to speak to us about your current situation please call 0330 094 5476 or send us a message and we’ll be in touch as soon as possible.