No Deposit or Low Deposit
Buying a home might just be your most daunting experience yet. There are plenty of routes that can help you buy a home with a low deposit or even no deposit at all.
95% Mortgage Guarantee Scheme
Introduced by the U Government in 2021 the Mortgage Guarantee Scheme gives lenders confidence in high-risk loans. This works as the government gives a guaranteed portion of 80% to lenders. In essence, that means the government would partly compensate the lender if the mortgage were not paid for.
This can help you as a first-time buyer secure a good mortgage on homes up to £600,000.
Zero Deposit Mortgage
Also known as a 100% no-deposit mortgage is a loan that covers the full price of the property you’re buying. Meaning that you don’t have to spend years savings for a deposit.
Most lenders ask for at least 10% of the property price as a mortgage so this can save you thousands in upfront costs. There are only a few no-deposit mortgages available on the market. To qualify you’ll need an excellent track record of paying your rent or with any previous financial commitments.
Shared Ownership
The government’s shared ownership scheme offers a different route to homeownership. The scheme allows you to purchase a share of the home if you’re unable to put down a deposit for the full value of the home.
This scheme is only available to those who have a household income of less than £90,000 per year in London or £80,000 outside of London.