There is an overwhelming amount of information out there subject to constant changes. Mortgages have varied over the years and many people aren’t aware of the different variable that come into play which could allow them the opportunity to obtain a mortgage.
We have dedicated time over the last month to research and find out about the different mortgages currently on offer. Now is the perfect time to start planning for next year and if buying a house is something to consider for the upcoming year then they we hope this article helps and inspires you to contact a broker and start the process.
Mortgage offers are very personal, and nothing is guaranteed until you have the fact and figures and a broker to go over those. However, it is good practise to have a background knowledge of what you could be eligible for.
Many of the UKs main lenders have once again opened the door to 95% mortgages. With Barclays, Santander HSBC and NatWest leading the way. This government backed scheme is an amazing way to bridge the gap allowing people to become homeowners without having to provide as high of an initial cost as before. The new scheme allows lenders to purchase a guarantee on a portion of the mortgage. Enabling them to receive compensation of losses in that event. This has given many lenders the safety net they required to allow 5% deposits after the turmoil of Covid-19 and the knock-on effects of the pandemic.
Springboard Family Mortgages
A more modern approach to mortgages the springboard family mortgage allows a friend or relative to use their savings to provide you the opportunity to proceed with your mortgage without having to come up with your own upfront payment. A relatively simple concept a friend or relative can front the money (usually 10% of the mortgage) this will be held in an account securely for a period of time. That length of time can vary from lender to lender. At the end of this period providing no payments have been missed that sum of money will be returned with interest to the lender. With the springboard mortgage you have full ownership over the property. As expected, all major UK banks are offering this kind of mortgage from Nationwide, Halifax, Post Office Money, and Barclays just to name a few.
Buy to Let Mortgages
A more commonly talked about mortgage, buy to lets. This mortgage is for people looking to get on the property ladder but not looking to move yet or people looking to purchase a second home and gain an income from the property. Buy to let mortgages typically work on an interest only repayment plan meaning you only pay back the interest on the mortgage monthly and not the capital debt. This does mean that you will have to pay back the full value of the borrowed amount at the end of your mortgage. Another variable worth mention is that most buy to let mortgages will require a minimum of 25% as a deposit.
Now is the perfect time to start discussions about your future for 2022. Whether you are a first-time buyer, selling your home and buying something new or considering stepping into the world of buy to lets.
The information provided here is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We recommend you seek advice from a professional and would be happy to provide you with contact details to our recommended Brokers.