Government Backed Shared Equity Mortgages Offer the Best Solution By Chris Borthwick

If you are trying to get your first mortgage or trying to remortgage, you'll know exactly how hard first of all being offering a mortgage and then at a decent rate. The mortgage market is far from competitive while many types of mortgages have been withdrawn. We have seen the demise of the 125% mortgage at the peak of the property boom, then the 100% mortgage last April. Now the most available to borrow is 85% of the value of a home.

The government is heavily promoting shared equity schemes as it recognises the biggest hurdle is being unable to put up a decent deposit. If you are in Scotland, the Scottish government offer their own shared equity scheme, low-cost initiative for First Time Buyers (LIFT). Under this scheme the buyer would normally pay between 60-80% of the price of a home and the government would take a shared equity by making up the reminder of the mortgage. The buyer owns all the property and the Scottish Government will have a security in the portion they have invested. If you decide to sell the property, the government will take back its cut at this point. It is worthwhile checking areas as it isn't available in every part of the country.

The UK government offers another scheme so consumers can get shared equity mortgages. The Open Market Home Buy scheme offers key workers and first time buyers the opportunity for an equity loan of up to 50% of the property's value.

There are a couple of different schemes available with one scheme not requiring the buyer to pay anything back on the loan for five years and even then the buyer only incurs a low rate of only 1.75% for the next five years. You can pay a deposit if you wish with these mortgage schemes however it isn't necessary.

I always recommend using the services of a mortgage broker that will search the whole market. This will take the hassle out searching all offers, ensure you can compare every deal as well as have access to expert advice.

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. Article Source: http://EzineArticles.com/?expert=Chris_Borthwick