Entering the property market as a first-time buyer is becoming increasingly challenging, but there are signs of potential change ahead.
The specifics of the upcoming Budget announcement by the Chancellor on November 26 remain uncertain, but it is expected that housing will be a significant focus with anticipated alterations.
However, if saving for your initial deposit is still a struggle, implementing certain strategies can help you accumulate £5,000 within a year, potentially sufficient for your first home down payment.
Several mainstream banks are now providing mortgages tailored for first-time buyers, featuring loan-to-value (LTV) ratios of up to 99%. This setup allows borrowers to access more substantial loans with a smaller upfront deposit.
For instance, the Yorkshire Building Society offers a mortgage requiring a £5,000 deposit for properties valued up to £500,000. For a couple, this translates to each person only needing to save £2,500 to qualify. Nevertheless, aiming to save more for the deposit and associated moving costs is advisable.
WHATSAPP GROUP: Receive financial news and exclusive deals directly on your phone by joining our Money WhatsApp group here. Members of our community also enjoy special promotions, offers, and advertisements from us and our partners. You can opt out of the community at any time. For more information, refer to our Privacy Notice.
NEWSLETTER: Sign up for the Mirror’s Money newsletter here to receive top advice and shopping deals directly to your email inbox.
High loan-to-value (LTV) mortgages offer a beneficial opportunity for first-time buyers to enter the housing market, but they come with certain drawbacks.
One potential risk is being locked into your property if house prices experience a sudden decline, resulting in negative equity where the mortgage amount surpasses the home’s market value. Additionally, high LTV mortgages often entail higher interest rates or extended terms, making remortgaging after the fixed-rate period challenging.
When