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KarlB -> RE: First Time Buyers (28/10/2008 3:54:16 PM)
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Hi all
First post here.
Thought I would point out that there are currently several schemes aimed at first time buyers getting a foot onto the property ladder.
These include schemes such as the "my choic homebuy" scheme which allows an individual to obtain an equity loan from the government for between 15% and 50% of the value of the property they wish to purchase. This loan is then essentially used as a depoit and the remainder of the purchase price can be obtained via a standard mortgage. The equity loan from the government is charged at a very low interest rate (less than 2%).
This allows TFBs to purchase a property without a deposit, although they will need cash for the associated costs.
There are a few restrictions with the scheme, such as a maximum property value which will vary depending on the area, but it does have the benefits of allowing the purchaser to obtaina mortgage at the more competitive rates as they won't be borrowing at a particularly high loan to value.
A good mortgage broker should be able to help the individual obtaint a competitive mortgage and have information on the schemes available.
Hope this is usefull.
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