Whilst there are many people that are still in need of getting onto the housing ladder there is now more scope as more mortgages become available for those who only hold a 5% deposit.
Over the past ten years there has been a rapid increase in the amount of deals available to those looking for a 95% mortgage, originally there were just 3 deals available, today there are over 400!
Due to the increase in offers available, it has forced many lenders to offer lower and lower rates to increase their competitiveness in the market.
The majority of those will small deposits are made up of First Time Buyers, which is great news for those who are looking to buy their first home and get on to the property market. The wider choice available gives great advantages to those who are looking to buy for the first time, and there are many added incentives for this market such a new home builders offering ‘cash incentives’ off of the price of new homes.
The biggest majority, around 80%, of offers for first time buyers with small deposits are based on Fixed Deals, these are often invaluable for new homeowners who will need to budget for many new costs when they move into their first home.
Although the amount of 95% mortgages have increased, the FCA affordability checks have become more stringent since the financial crash of 2008. If a first time buyer can amass more than a 5% deposit it will provide them with even greater choice of deal.
The best advice is always to speak to a professional and qualified Mortgage Adviser before making any decisions to step on to the property ladder. A Mortgage Adviser will be able to provide you with an idea as to how much you’d be able to borrow, what sort of house price you’d be looking at as well as your affordability. They’d be able to make the application on your behalf and sort all paper work out for you. So, with that in mind why not speak to an Adviser and find out what 5% deals are out there for you and what you would be looking at in terms of being accepted? Call 03333 44 85 11 or email firstname.lastname@example.org and someone will be in touch as soon as they can.