First-time buyers – is now your chance?
Dental and Medical Financial Services explain the options available to you if you’re looking for your first house.
If you are going through the painful process of saving for a deposit on your first home, you will know the hurdles faced by young people to get onto the property ladder.
There are several government schemes available to help with realising your home-ownership dreams.
The government introduced the Help-to-Buy scheme to subsidise the deposit requirement, providing 20% of the property value on an interest-free loan over five years.
With a 75% mortgage, the homeowner contributes just 5% up-front.
Be careful though, some borrowers have fallen into rate traps, due to new lending criteria.
The Help-to-Buy ISA has also been popular with over 500,000 young people opening an account since the launch last December.
This new style ISA receives a 25% government bonus, up to a maximum of £3,000.
It is potentially a long road, with a £200 monthly cap on your investment, however the incentive is worthwhile.
The new Lifetime ISA is also due to launch next year, with similar incentives to the Help-to-Buy – a 25% bonus with compound interest and more flexibility.
As house prices have soared in recent years, many first-time buyers are being forced to take 40-year mortgages, simply for affordability.
This option results in a high interest repayment over the long-term though, so it is always wise to shorten the term as soon as you can.
Experts predict a fall in house prices in the coming months, due to uncertainty in the market.
Could this be the chance first-time buyers have been waiting for?
Do you have a deposit?
Have you checked your credit rating?
For help with your first mortgage, Dental and Medical Financial Services are specialists in helping doctors and dentists realise their home ownership dreams.
Call 01403 780 770 for a quote.