New mortgage opportunity with zero deposit
As a moving company, we try to be on top of any new changes and situations that might affect our trade.
This time we can finally share something exciting that will help people without savings to buy a house and allow them to take their first step on the property ladder, which may have seemed impossible before.
On 10/05/2023 the new deal was launched for those who are planning to have their own home in the future. Let us take you through some criteria that you have to match in order to be eligible.
Criteria for new applicants
A new mortgage product is available with no deposit or guarantor but here are some important things to consider before starting this process with your mortgage advisor.
- First-time buyers only
- Aged 21 and over
- Present proof of rent for the last 12 months with no missed payments
- Bill, council taxes and other payments were paid on time
- No missed payments towards loans or credit cards for the last 12 months
- The mortgage monthly payment cant be higher that the rental payment
- Maximum mortgage value up to £600 000
The mortgage deal is designed to help renters who are struggling to stump up a deposit.
Who is not eligible?
Before wasting someone’s time let us give you some main points when you are not eligible for this new product.
- Universal credit claimants
- Benefits claimants
- Tenants with a low monthly rent
- Joint applicants not related to a family
Important to know
The borrowing scheme cannot be used on purchasing a new build property as used with any other borrowing schemes. As an applicant, you would have to pass an affordability and credit check.
The product will be fee-free with five years fixed rate of 5.49% and a maximum mortgage term of up to 35 years.
Every applicant needs to demonstrate a strong track of paying their rent, with evidence of a minimum of 12 months of rental history.
EXAMPLE – by paying £1000 monthly rent you might be eligible for up to £185 000 no-deposit mortgage product.
Things to consider before making a decision
The zero deposit mortgage option obviously helps those who are struggling to save towards a deposit, but the interest rate of 5.49% is a more expensive option that any other mortgage scheme that is available when purchasing a house with a deposit.
As a result, 100% mortgages can make house buyers more vulnerable to going into negative equity if house prices fall as the value of the loan is more than the property this might have an unpleasant impact on the buyer’s credit history.
When you are ready to move don’t forget about us!
Just a friendly reminder! You don’t need to have a moving day in order to get a free no-obligation quote from us. Please feel free to use our business WhatsApp where you can simply upload everything that you are planning to move or just give us a call!