As first-time buyers currently make up over a third of mortgage activity, Miller Countrywide estate agency is encouraging anyone aspiring to buy their first home to do their research and look at all the options available to help them take their first step onto the property ladder.
Stuart Lobb, divisional managing director for Miller Countrywide, said: “With inflation and interest rates slowly coming down, first-time buyers are more determined than ever to achieve their homeownership goals. However, we find that they’re often not aware of the many great schemes and options available to help them purchase their first home and that might open the door for many more aspiring homeowners.”
Miller Countrywide has set out its top 10 schemes and opportunities tailored to supporting first-time buyers onto the property ladder.
1. Mortgage Guarantee Scheme - This initiative aims to increase the availability of 95% LTV (loan-to-value) mortgage products, helping more households to access mortgages with a smaller deposit.
2. Guarantor Mortgage – A home loan where a parent or close family member takes on some of the mortgage risk by acting as a guarantor.
3. Gifted Deposit - A lump sum of money gifted by a family member to cover the entirety or part of the borrower’s deposit.
4. Joint Borrower Sole Proprietor - Allows relatives to contribute to the mortgage without needing to be on the title deeds.
5. Family Springboard – A product where family or friends can help with a mortgage with as little as 0% deposit, with their savings returned with interest.
6. Track Record Mortgage – This product allows customers to borrow up to 100% LTV (loan-to-value) if they have a proven track record of renting for 12 months.
7. £5K Deposit Mortgage - Benefit from the opportunity to move with only a £5,000 deposit.
8. Shared Ownership - Shared Ownership offers the chance to buy a share of a home. Typically this is a share of 25% to 75% of the home’s value, however some selected homes are as low as a 10% share. You then pay rent on the remaining share of the property.
9. First Homes - New homes are sold at a minimum of 30% discount to first-time buyers, with the discount reapplied to future sales to continue benefiting first-time buyers.
10. Deposit Unlock - A mortgage indemnity scheme that supports 95% loan-to-value (LTV) lending on new build properties, reducing the lender’s risk with an insurance policy paid by the developer.
Stuart added: “There are actually many schemes out there which lots of first-time buyers are not aware of, not only offering a lifeline to those stepping onto the property ladder, but also providing a sense of security and possibility in what can sometimes be a challenging market.
“However, every scheme has its own set of criteria and benefits, so it’s essential to weigh them against your circumstances and long-term financial goals. Speaking to a mortgage advisor can provide clarity and direction, and ensure you choose the path that aligns with your homeownership aspirations and financial health.”
Taking out a mortgage is a significant financial decision, and it’s always wise to seek advice from mortgage professionals to find the best option for your situation. Click here for more information.
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