Embarking on the journey to purchase your first home or transitioning from renting can be a challenging adventure.
Fortunately, the UK offers several magical mortgage options designed to support first-time buyers and renters. Here, we’ll explore four key programs that can help make your journey to homeownership smoother.
Nationwide Helping Hand Mortgage
Link*: https://www.nationwide.co.uk/mortgages/first-time-buyers/helping-hand-mortgage/
*Upon clicking the above link, you are leaving the website of Endeavour Magic Mortgages and we cannot be held responsible for the content of this external website.
The Nationwide Helping Hand mortgage is crafted to provide extra support to first-time buyers by enhancing borrowing capabilities. Please note that, unfortunately, those who are self-employed or using an affordable home ownership scheme such as shared ownership or Right to Buy are not eligible.
It’s available to eligible first time buyers with 5 and 10 year fixed rate mortgages, up to 95% loan to value.
To be eligible for a Helping Hand, you need to:
- Be a first time buyer. This means you will not have had a mortgage in the last 3 years. If applying jointly, both applicants need to be first time buyers.
- Have at least a 5% deposit.
- Take out a 5 or 10 year fixed rate mortgage.
Increased Loan Amount: Allows you to borrow up to 20% more.
Affordability: Perfect for those with higher affordability and secure employment, eager to step onto the property ladder sooner.
Features and benefits
– £500 cashback* when you complete your mortgage.
– Ability to overpay up to 10% of the loan amount each year without incurring an Early Repayment Charge (ERC).
Skipton Track Record Mortgage (100% LTV Renters Mortgage)
Link*: https://www.skipton.co.uk/mortgages/track-record-mortgage
*Upon clicking the above link, you are leaving the website of Endeavour Magic Mortgages and we cannot be held responsible for the content of this external website.
Skipton Building Society offers a unique mortgage without the need of a deposit, specifically for renters who do not currently own any properties. Individuals looking to proceed with this mortgage must have rented for a minimum of 12 months. You also can’t have owned a property in the UK within the last 3 years and must be aged over 21.
No Deposit Required: Secure a mortgage without needing a deposit – abracadabra, your dream home awaits!
Designed for renters with a solid history of rental payments.
Fixed rate for 5 years.
No completion fee.
Affordability Assessment: This is based on your rental payment history, which can demonstrate your ability to manage mortgage repayments.
Who can apply?
- You have no missed payments on debts / credit commitments in the last 6 months.
- You can borrow up to £600,000.
- You’re not looking to buy a new build flat.
- For Joint applicants (up to 4 people) – you can prove that all rent has been paid either by one applicant or collectively for 12 months in a row, within the last 18 months.
Accord £5k Deposit Mortgage for First Time Buyers
Link*: https://www.accordmortgages.com/products/5k-deposit
*Upon clicking the above link, you are leaving the website of Endeavour Magic Mortgages and we cannot be held responsible for the content of this external website.
Accord Mortgages offers a low-deposit option for first-time buyers, making it easier to purchase a home with a smaller initial outlay. This scheme is for pre-owned houses only (no new build properties).
Start your homeownership journey with just a £5,000 deposit, or minimum 1% of the property value.
Gifted deposit allowed from an immediate family member only.
Minimum loan £95,001 (on a £100,001 purchase) Maximum £495,000 (on a £500,000 purchase).
The product is specifically on a 5-year fixed rate.
Who can apply?
- At least one applicant must be a first-time buyer (defined as never having owned a property in the past) and no background properties.
- The maximum age allowable at the end of the term is 70.
- Both applicants must have indefinite right to reside in the UK.
- Maximum Loan To Income (LTI) is 4.49 times your salary.
Barclays – Family Springboard Mortgage | No borrower deposit
Link*: https://www.barclays.co.uk/mortgages/family-springboard-mortgage/
*Upon clicking the above link, you are leaving the website of Endeavour Magic Mortgages and we cannot be held responsible for the content of this external website.
The Barclays Springboard mortgage provides first-time buyers with the opportunity to buy a home with the assistance of a family member or friend. Please note that you and your helper are tied to the springboard mortgage for a minimum of five years.
Family Assistance: A family member or friend can contribute 10% of the purchase price, held in a Barclays account for security. After 5 years they’ll get their money back, with interest, providing the home buyer keeps up their mortgage payments.
No Deposit Required: Secure your mortgage without needing your own deposit.
You can borrow over a 35-year term.
The product is specifically on a 5-year fixed rate.
F.A.Q.
Frequently Asked Questions
“Who qualifies for the Nationwide Helping Hand mortgage?”
To qualify, you need to be a first-time buyer with at least a 5% deposit and meet Nationwide’s affordability criteria, which includes secured employment and sufficient income to support borrowing up to 5.5 times your salary.
“Can I get the Skipton 100% Renters Mortgage if I have never rented before?”
Unfortunately, no. This mortgage is designed for those who have a proven track record of rental payments over at least 12 months, demonstrating their ability to make regular monthly payments akin to a mortgage.
You need to provide a deposit of at least £5,000, and a minimum of 1% of the property’s value. Accord then offers a mortgage for the remaining amount up to 99%, with various fixed and tracker rate options available.
The 10% provided by your supporter is held in a Barclays savings account as security for five years. After this period, the money is returned with interest, provided all mortgage payments have been made on time.
“Are there any risks involved with these mortgage options?”
All adventures come with risks. This includes potential higher repayments if interest rates increase, or the possibility of losing your home if you cannot keep up with repayments. It’s crucial to assess your financial situation and seek professional advice before committing.
By exploring these options, first-time buyers and renters can find enchanting solutions to help them achieve homeownership. For more detailed advice and to see which option best suits your needs, feel free to contact us. Your magical home awaits! 🏰
