Saving a sizeable deposit is undoubtedly the biggest stumbling block for first-time buyers. Luckily most high street lenders offer 95% mortgages to first-time buyers providing you meet the rest of their criteria.
For those who are unable to save the minimum 5% required co-ownership could still be a viable option.
You should also note that the best deals and rates are usually reserved for applicants with the largest
deposits as you would represent less of a risk to your Bank or Building Society. The best rates will be available to those with a 75% or less LTV (Loan to Value).
Create a Saving Plan and Start now !
When saving for a deposit you should always be working towards a goal, first of all, decide approximately how much you want to spend on the property and then work out how much you will need to spend on a monthly basis in order to get it.
Don’t forget to budget for additional expenses such as decorating, solicitor fees and valuation fees.
Boost your Savings !
If you are eligible the governments Help to Buy ISA is a great way to boost your savings and offers a great combination of return and security.
The government will top up your savings by 25% as long as you save the £1,600 minimum requirement. You will also be restricted to saving no more than £200 / month and your bonus will be paid out when you buy a property.
Contact a Mortgage Broker !
If you need help with your mortgage application or just want to have a professional search through a comprehensive range of mortgage products on your behalf Contact us today. We have mortgage brokers across all of Northern Ireland and are always happy to help.