Home ownership remains a hot topic across the country among the younger generation and their parents; young people wonder how they will get on the ladder in light of ever increasing house prices, whilst their parents look to ways they can help. A first time buyer guarantor mortgage can be ideal for young people, utilising their parents’ financial circumstances as security.
As a result of its job opportunities and lifestyle, London continues to attract people from all walks of life, with the population now over 8.6million. However, with the average home price in London now exceeding £500,000, people in their 20s and 30s are increasingly unable to enter the property market without the support of their parents, be that in terms of raising a deposit or support securing a mortgage.
Thanks to our extensive network of lenders, our product of the week is a first time buyer guarantor mortgage available on a ‘joint mortgage, sole proprietor’ basis, where the parent would not be named on the title deeds but whose income and overall wealth and assets would be considered as security for the mortgage. The product has a very competitive five year fixed rate of 2.34% at 85% loan to value (LTV), meaning the first time buyer does not have to raise a huge deposit.
- Rate of 2.34%
- Five year fixed rate
- 85% LTV
A benefit of this product is that parents would not be subject to the additional stamp duty (SDLT) usually applicable to second properties. Following changes to SDLT in recent years, this would be financially beneficial if the parent already owns their own home and doesn’t want to retain an interest in their children’s property.
We are experienced in helping first time buyers take their first step into the world of home ownership and can advise on the most effective way to obtain parental help. If you are interested in this product, please do not hesitate to get in touch as we would be more than happy to introduce you to the relevant lender and provide expert advice for your circumstances.