Great News for First Time Buyers with 5% deposit

Increased house prices and cost of living crisis have made it difficult for First Time Buyers recently. That is why the Mortgage Guarantee Scheme which was to close in December has been extended to December 2023.

How can this scheme help First Time Buyers?

With challenges to save up for deposit for their first home, many buyers can barely get the minimum 5% deposit needed to obtain a mortgage. The scheme gives financial guarantees to lenders that in turn make more products available for customers with as little as 5% deposit. It only applies to properties worth up to £600000. There may be other conditions to be met, dictated by lenders too.

If you are a first-time buyer planning your first move, speak to a qualified broker. They will help you with affordability assessment, decision in principle and the rest of your application process as well as with other aspects of house purchase. They will hold your hand throughout the house buying process step by step.

News on Mortgages and cost of living crisis

You may have seen a number of headlines over the past weeks around mortgages and interest rates. Despite the headlines about rate rises and shortage of mortgages, there are a significant number of mortgage products available and more and more products are being brought back to the market albeit the pricing may look different.

All this is because lenders are repricing their products in line with the changing interest rate. There are also changes in they way they calculate how much you could borrow.

This is something that happens continuously in the mortgage market, and it means we’re well placed to support you with all your financial advice requirements during these ever-changing circumstances.

Martin Lewis* shared some useful advice about what mortgage customers should do next:

“If you're serious, speak to a broker - they're currently more important than ever. Lenders' acceptance criteria differ from one to the next, plus they're subject to change - something that's been done at short notice in reaction to the cost of living crisis. For example, one lender might include overtime or commission in your income assessment, and another might only count your base salary.

To navigate the maze , we strongly suggest you use a mortgage broker. They do the 'finding a deal' work for you and have details of most lenders' acceptance criteria, which aren't easily obtainable by the public, plus many deals (even some product transfers) that can only be accessed via brokers.”

As always, we are available should you need any support or advice on your finances and insurance.

If you would like to talk with one of our advisers, contact us on 01538807101 or office@grnfinancialservices.co.uk

*Source – Money Saving Expert’s Weekly Money Tips dated 28 September 2022

Information contained within the blogs was correct at time of publication but is subject to change.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Stamp Duty Tax changes - help for buyers!

The Chancellor has announced support for Home Buyers!

In the recent Mini Budget, Lord Chancellor announced a cut to Stamp Duty Land Tax, which is a tax paid on property purchase. The cut raises the threshold of how much a property has to cost before stamp duty is paid to £250,000.

First time buyers will have no tax to pay for properties priced up to £425000. They will be able to claim relief on properties worth up to £625000.

This change will help many home buyers across the country

If you need help with house buying process, contact us and we will be happy to assist you.

Information contained within the blogs was correct at time of publication but is subject to change.

Your home may be repossessed if you do not keep up repayments on your mortgage.