No deposit mortgages ?
Sometimes it’ can be a struggle to put together a deposit for a mortgage, particularly as the amounts required these days are so high.
Well, now there might be an opportunity for first time buyers to get a mortgage without a deposit.
How’s it work…
A family member helps out by depositing some of their savings into a savings account with your mortgage provider. The mortgage provider then uses your family member’s savings as security. In some cases, your family member receives interest on the deposit they’ve made. After an agreed period of time, 3 years in most cases, your mortgage provider refunds the amount held as security to your family member. Although your family member isn’t considered a guarantor, sometimes the mortgage provider might retain some or all of their money for longer than 3 years. For example where you haven’t maintained all your mortgage repayments.
To ensure you know what amount you need to pay each month, the mortgage provider usually offers you a fixed rate. You family member agreed to keep their savings on deposit for the same period as your fixed rare.
So, now perhaps there’s an opportunity to buy a home without a deposit. If your family or loved ones can provide 10% of the property, and you think this type of mortgage might help you, why not find out more. These low deposit or no deposit mortgages aren’t widely available and restrictions will apply, but this is perhaps an opportunity to get on the property ladder sooner than expected.
Contact MDFS on 020 3174 0099 or visit our website www.mdfs.co.uk for more information. We’re a fees free mortgage broker from start to finish, so you’ve got nothing to lose. ,