Get a Mortgage Without Saving For a Deposit |
If you are looking to buy your first home you may be contemplating your options available to you. If you have found your home and have the necessary deposit saved then great but many are finding saving the deposits now being demanded are impossible for them to save for anytime in the near future.
There are a number of shared equity mortgage schemes that can help you avoid spending years saving up a deposit. If you are lucky enough to have family that can join in and take an equity stake in the property to get around the need for a deposit then there is a family equity mortgage this can be an option.
The parent or family member who takes the equity stake in the property legally has the stake in the property, which normally is around 10%. The parent would get their money returned to them if the property is sold, the property can't be sold without the funds being returned to the parent.
There are a couple of lenders who offer family equity mortgages, using a mortgage broker is beneficial in helping you find the right mortgage deal for you, taking the hassle out of searching the best deals as well as providing that valuable expert advice that can be very helpful to you in getting the best deal that suits your circumstances.
If family assistance isn't an option then there are government schemes that are there to help individuals and families with the purchase of their first home. The LIFT shared equity mortgages scheme in Scotland is for those who aren't able to financially afford a mortgage on their own, each applicant's finances are assessed which isn't limited to income, it also includes savings. It is aimed at low to moderate income citizens.
Each case would be individually assessed. The government can lend up to 49% (the buyer needs to hold a majority share), normally the funding would be around 20-40% but as I say more can be loaned. With the LIFT scheme the buyer owns 100% of the home and is pretty much left alone when it comes to the home with permission only needed if the buyer wants to bring in a tenant.
Chris Borthwick writes articles covering a broad range of subjects. His main area of expertise is mortgage advice and writes many articles on mortgages for finance industry, mortgage brokers and for the general public. Article Source: http://EzineArticles.com/?expert=Chris_Borthwick |
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