The spectre of rising house prices and ever-larger deposits being required in order to get a foot on the first-rung of the housing ladder, has not gone away.
Even existing homeowners who want to take the next step up the ladder and buy a larger home can struggle to raise a large enough deposit. It is no wonder then that high LTV mortgages are in demand and that the bank of mum and dad has become a critical element in some housebuyers’ financial plans.
It’s also no surprise that the government is supporting hard-pressed homebuyers through schemes such as Help to Buy and lenders are continuing to think-up innovative new ways of addressing the age-old problem of raising a deposit.
There is a danger, however, that some borrowers overlook the obvious: applying for a high LTV mortgage. There are now far more deals on offer and some excellent fixed and discounted rates on mortgages up to 95% LTV.
A first-time buyer purchasing a typical starter home costing £150,000 need only find a deposit of £7,500. Yes, it’s still a lot of money (and I do accept that prices in London are a lot higher), but £7,500 is an achievable goal for many and does enable them to buy a home of their own.
So what sort of mortgage deals are available at 95% LTV? Well, here at Saffron we have 3 first-time buyer deals available up to 95% LTV:
· 3.97% fixed for 3 years with no arrangement fee
· 3.97% fixed for 5 years with a £495 arrangement fee
· 4.49% 2-year discount with no arrangement fee and a £500 cashback on completion
These deals are available on loans from £30,000 up to £500,000 for borrowers aged 21 or over with a clean credit record. Early repayment charges apply and full details can be found here.
For existing homeowners wanting to take the next step up the housing ladder we have the following 95% LTV deals:
· 4.39% 5-year discount with an arrangement fee of £995
· 5.39% variable rate with an arrangement fee of £495
We also have a range of deals up to 90% LTV starting with rates from just 2.29% for those wanting to either purchase or remortgage, including deals for contractors and professionals. Early repayment charges apply and full product details can be found here.
What’s more, every application is individually assessed by a skilled underwriter; we don’t use credit scoring to make a lending decision. Your clients can therefore be assured that their application will be given our full attention and won’t be rejected simply because they haven’t amassed sufficient points to satisfy an automated scoring system.
Buying a first home and even taking the next step up the housing ladder is never easy, but some of the excellent mortgage deals currently on offer certainly makes life a lot easier for aspiring homeowners.