The impact of COVID-19 on first time buyers has been well-documented, with lenders restricting high LTV mortgages and scrutinising applications very carefully to ensure they are lending responsibly during a time of unprecedented uncertainty. Late last year, the Government announced a new equity loan initiative to help first time buyers and stimulate home building. Starting this year and running until 2013, the government will lend homebuyers up to 20% of the cost of a new-build home, with borrowers required to pay a further 5%. Loans are interest-free for five years and regional price limits have been set to keep the price of new homes reasonable for those taking their first step onto the property ladder.[1]
Although our clients are unlikely to take advantage of these types of schemes, they are vital to consider in the wider context of the market, for instance when we advise property developers or investors. What we would call ‘traditional’ first time buyers may not require help from a mortgage adviser specialising in large loans, but we do work with a high volume of clients purchasing their first properties, as evidenced by our latest case study.
Case profile
We were approached by first time buyers looking for an 85% loan to value (LTV) on a £1.64m property in London. Although they had not previously owned property, our clients had a realistic deposit and generous income to support their mortgage application.
Solution
Associate Director Nigel Bedford, was able to find our clients a 35-year deal on an incredibly low rate, fixed for five years. They were delighted with the deal and are now happily living in their first home.
If you are a first-time buyer looking for a large mortgage or you have a specialist set of circumstances, you may benefit from being able to access our network. We have access to private banks, High Street lenders and boutique lending houses, meaning we have a truly comprehensive view of the market from which to advise you. Get in touch to find out more.
[1] https://www.yourmoney.com/mortgages/revised-help-to-buy-scheme-open-to-applicants-from-december/
