Well the surprising answer to this is that it is entirely possible to get a mortgage if you are a first-time buyer and no you're not going to be restricted to a property valued at £100K ie 95% LTV!
Let me explain.
There is a lender out there at the moment (July 2024) who is prepared to lend with the following criteria
Minimum deposit of £5,000
Maximum loan to value (LTV) 99% which means that the maximum purchase price will be £500,000
At least one buyer has to be a 1st time buyer
Maximum loan is £495,000 and a minimum loan of £95,001
Maximum term 40 years
Maximum age at the end of mortgage term is 70
There is no interest only option just a repayment option
The mortgage is restricted to house is only so no flats and no new build properties
Maximum loan to income is 4.49X
Gifted deposit is acceptable but only from family members
They only have 5 year fixed rates
Sounds too good to be true.
The devil is in the detail as ever. Watch out for the rates. A five-year fixed-rate with the same lender on a 90% LTV is 1% cheaper. As ever, you will always get a better rate if you are able to provide a higher deposit bringing down the loan to value.
Your credit will need to be A1. There is an enhanced credit score which must be achieved.
But listen, if you've only got £5K and you're on a good salary with a solid credit score then this may get you on the ladder!
More than happy to chat this through with you so give us a buzz.
Call Johnny - Start packing!
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