Shared ownership – buy a percentage of a property
through a specialist housing association, normally 50% and rent the rest on a small rent.
Key Worker Schemes – but only for specialist professions eg teachers, police, fire fighters, nurses, social workers, local government officers.
Guarantor mortgages – parent or close family act as a guarantor for the loan.
100% mortgages – only one lender and rate is 6.48% fixed for 3 years and needs family guarantor
95% mortgages – Rates start at 3.95% discounted for 3 years. Only available from the smaller lenders eg Newbury Building Society.
This lender only lends in certain postcode areas but AL, MK, HA and WD are covered. Further restrictions apply. Rest of guarantor rates are between 5.29% and 6.48% and all need a guarantor.
90% – More choice of rates starting at 3.79% but all need a guarantor. However tracker rate of 4.99% available from Abbey with no guarantor required.
The best option if parents have the funds is to gift a deposit. A 15% gifted deposit gives rates starting at 3.19% and 25%
gifted deposit gives rates starting at 2.09%
Buying is still a cheaper options than renting if deposit is available and there is the potential for the value to grow over the longer term.
For further information please speak to one of our mortgage advisers on 0800 435648.
