No deposit, 100% Mortgages for First Time Buyers – Everything You Need To Know.
For too long, deposits have held back renters from becoming homeowners. With house prices and the cost of living rising, how can people be expected to pay their rent, keep up with bills and save 5 figure sums for deposits?
If you are a first-time buyer with a track record of paying rent and household bills, we may now finally be able to offer a mortgage for up to 100% LTV, with no deposit required, to help you into your first home. All thanks to a lender called Skipton.
Who is eligible?
To be eligible you must meet the following critirea:-
– Each applicant is a first time buyer and must NEVER have owned a UK property
– Each applicant is aged 21 or over
– If you have a deposit, it must be less than 5% of the purchase price
– Each applicant has no missed payments on debts / credit commitments (e.g. mobile phone bill) in the last 6 months
– Each applicant must have an excellent credit score (to request a free copy of your credit report from the actual company that is used by the lender click here).
– You are looking to borrow up to £600,000
– You meet the household-to-household criteria (see below)
– You are not looking to buy a new build flat
– You have proof of having paid rent for at least 12 months in a row, within the last 18 months in the UK
– You have 12 months experience paying all household bills within the last 18 months in the UK.
What are they offering?
– Up to 100% LTV mortgage for first-time buyers currently renting, who can demonstrate a track record of affordability of ALL monthly rent and household expenditure for a minimum of 12 months in the last 18-month period.
– If there is a deposit, they are happy to consider even if it’s gifted.
– The monthly mortgage payment must be equal or lower than the average of the last 6 months rental cost – e.g. if the average rent over the last 6 months is £800, the mortgage payment must be £800 or lower
– Max term 35 years
– Max borrowing 4.49 x Income
– Product details 5 year fixed
What does household-to-household mean?
Household-to-household means that the same people who are renting now (and have been for the last 12 months) are the same people applying for the mortgage.
If applying alone, the rental and household expenditure payments must have been covered entirely by you for 12 consecutive months within the last 18 months.
Joint applicants (maximum of 4 per application) will need to evidence that these payments have been made either: collectively, or wholly by one applicant.
Joint applicants who have been renting separate properties will be eligible, as long as each applicant can evidence that they have individually covered their entire rental and household expenditure payments.
To find out whether you qualify and how much you can borrow contact Be Mortgages today on 0203 2913001.