New zero deposit mortgage now available!
A brand new zero deposit mortgage specifically aimed at people currently renting has just become available to us.
Buying your first home can be one of the most important, and significant financial decisions you will ever make. It is a big step towards achieving your dream of homeownership. However, for many people, saving for a deposit can be a significant barrier to buying a property. Fortunately, a new mortgage product has become available to us that will allow you to get onto the property ladder without having to save for a deposit. This product is called a zero-deposit mortgage, and here is all the information you need to know about it.
What is it?
A zero-deposit mortgage is a type of mortgage that allows you to borrow the full amount of a property’s value without having to put down a deposit. This means that you could potentially purchase a property with no up-front costs, making it a very attractive option for those who struggle to save for a deposit.
What does the scheme offer?
This scheme is a good option for people currently renting. Renters who lack savings or financial support from their family could potentially move onto the housing ladder with this new zero deposit mortgage.
This new mortgage option could help people with a strong history of paying their rent but have been unable to save enough or save nothing for a deposit on their first home.
How does it work?
This deal is available for first time buyers across the UK. Any tenants who are aged 21 or over may be eligible to take out mortgages between 95% to 100% of the value of the property they want to buy. However, they will need to demonstrate that they have a strong record of paying their rent, providing a minimum of 12 months rental history in the process.
When looking at the affordability, buyers will not be paying me on a monthly basis than their current rent. For example, if a tenant is currently paying an average of £850 per month over the past 6 months, they will have a maximum monthly mortgage payment of £850.
The fee free mortgage is a five-year-fixed-rate product with a rate of 5.49%. This has a maximum mortgage term of 35 years. This rate is higher than the average five-year fix of 5%.
Is any renter eligible?
Like with all mortgages, not everyone is eligible for this type of mortgage. However, people may be eligible if:
they have paid in full at least 12 months’ rent in a row within the past 18 months.
are looking to borrow no more than £600,000.
pass affordability and credit checks.
are not trying to purchase a new-build flat.
Zero deposit mortgages can be an attractive option for those struggling to save for a deposit. They can help you get onto the property ladder sooner and put a permanent roof over your head, allowing you to feel more financially secure. Let us help you achieve your dreams of owning your own home by emailing us at info@themoneypartnership.com or phoning us on 01633 987070. This product could be withdrawn by the lender at any time without notice.
