Last month we mentioned 5% deposit mortgages in our blog and said we hoped they were due to make a comeback after quite a long absence.
A couple of weeks later and there was an announcement in the Budget to say that there was going to be a new government backed 5% deposit, 95% mortgage guarantee scheme to be introduced in April this year. This was brilliant news!
The scheme will be open to home buyers with a five per cent deposit, not just first-time buyers, for properties worth up to £600,000. It has been largely modelled on the previous Help to Buy scheme launched in 2013 to help lenders transition back into the market and is open to ALL properties not just new build.
Since then, you may also have seen that several lenders have already released new 5% deposit products on their own. As ever, once one lender brings out a new product there are usually more behind them and this is proving the case on this occasion.
So, what should you do next? What do you need to do to prepare for a first appointment? How do you find out if you will be eligible for one of the new products?
Firstly – contact your local mortgage adviser and book an appointment. They are likely to be very busy at the moment so get in early and be prepared to book well in advance.
This will then give you time to gather the required documents and information your mortgage adviser will need in order to give you informed advice on what your next steps should be. There should be no charge for these initial conversations but do please be prepared to show documents such as wage slips and identification as well as details of any credit cards/loans/finance you may have. You may also be asked to supply a credit file via a link so you will need time to sign up and download the required information for this too.
Follow any instructions given regarding your appointment and accessing video calls etc. Ask before the appointment if you are at all unsure. If you have an hour’s appointment and spend 20 mins trying to access the call or upload further information then that will be less time to ask the important questions you want to know about getting a mortgage.
Be honest with your adviser! If something was left unpaid last year or you’ve got a loan being paid with a friend or parent let your adviser know! It’s better for them to know upfront than to find out half-way through a mortgage application when you’re desperate to buy that perfect house you’ve set your heart on!
And lastly – SMILE. This is an amazing stage in your life and should be one of the most exciting! Your mortgage adviser is there to assist and guide you through the maze of information and to help you in your goal of owning your own property, either now or in the not too distant future.