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Buying your first home is a major milestone, but often, the challenge of saving for a large deposit can seem daunting. That’s why we’re excited to offer the £5k Deposit Mortgage, specifically designed to help first-time buyers get onto the property ladder with a smaller upfront investment.
What is the £5k Deposit Mortgage?
This new mortgage option allows first-time buyers to purchase their home with a deposit of just £5,000. It’s an excellent solution for those who are ready to buy but find saving for a larger deposit challenging.
Eligibility Criteria
To qualify for the £5k Deposit Mortgage, applicants must meet the following requirements:
- First-Time Buyers: You must never have owned a home before.
- Age Requirements: The oldest applicant must be under 70 years old at the end of the mortgage term.
- Residency: Applicants must have an indefinite right to reside in the UK.
- Property Types: The mortgage is available for existing houses only; new builds, flats, and properties in Northern Ireland do not qualify.
Key Loan Details:
- Maximum Loan-to-Value (LTV): Up to 99% of the property’s value.
- Deposit Minimum: £5,000.
- Property Price Limits: Eligible homes must be priced between £100,001 and £500,000.
- Loan Amounts: Available from £95,001 up to £495,000.
- Maximum Term: The mortgage can extend up to 40 years.
- Income Multiplier: Loans can be up to 4.49 times the applicant’s annual income.
Joint Applications
For those looking to buy together, joint applications are welcome. It’s important to note that at least one applicant needs to be a first-time buyer and no background properties should be owned by either applicant.
The £5k Deposit Mortgage opens up a new pathway for first-time buyers to achieve homeownership more readily. By understanding the eligibility criteria and loan specifics, you can better assess your options and plan your next steps confidently.
For more information or to start your application, feel free to contact us. Let us help you make your first home a reality.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
