Complimentary guidance on mortgage matters

“Taking out a loan with a high loan-to-value ratio inherently carries the risk that prices may decrease. However, opting for a five-year fixed rate agreement should assist in gradually reducing the mortgage and protecting against this risk.” Although there are a few options available for borrowers with a 5% cash deposit, such as shared equity and shared ownership loans, guarantor mortgages, and the deposit unlock scheme for purchasing a new-build home, it is uncommon to find deals for borrowers with no deposit.

Last year, Skipton building society introduced its Track Record mortgage specifically designed to assist first-time homebuyers. The 100% mortgage is accessible to those who are purchasing a home for the first time and do not have any cash saved for a deposit. However, they must have a 12-month history of making rental payments to establish their ability to meet financial obligations. The agreement does not necessitate a guarantor, does not have any fees, and offers a fixed interest rate of 5.45% for a duration of five years.

First-time purchasers are limited in the amount they can borrow, as their monthly mortgage payments cannot exceed the average monthly rent. Considering a standard monthly rent of £1,290, assuming the applicant is borrowing the full value of the loan at an interest rate of 5.45% over a mortgage term of 35 years, Skipton has the ability to lend about £241,000 for the purpose of purchasing a home.

Santander has reduced the interest rates on its residential and buy-to-let fixed rate mortgages by a maximum of 0.21 percentage points. This change will take effect starting tomorrow, March 28th. Santander has regularly provided highly competitive interest rates for home purchase and refinance in recent months. This latest reduction in rates has the potential to position them as the leading option in the market. The current offer is a five-year fixed rate for remortgage at 4.45% with a loan-to-value ratio (LTV) of 60% and a charge of £999.

Better.co.uk is an online mortgage adviser that has received a 5-star rating on Trustpilot. They specialize in helping individuals locate the most suitable mortgage and handle all the necessary negotiations with the lender to ensure its approval. *Failure to maintain mortgage repayments may result in the repossession of your home.