Really quick and easy ways to boost your income from home 23 Apr 2021
Again, needing to save a smaller deposit and apply for a smaller mortgage can make home-ownership far more accessible. There is also no interest to pay on the loan for the first five years, which could make your total monthly bill more manageable. Find out full information about this option here.Are there cons? Of course there are! Again, this scheme is only available for new-build houses, and availability really varies from area to area depending on demand.
The Government's 95% mortgage scheme will help first time buyers or current homeowners secure a mortgage with just a 5% depositThe Government's 95% mortgage scheme will help first time buyers or current homeowners secure a mortgage with just a 5% depositThe obvious benefit of these mortgages being available is that, as with the other schemes, you can save your deposit more quickly and get onto the property ladder sooner.
The downsides to taking out a 95% mortgage should definitely be considered. Borrowing more means that your monthly repayments will be higher, and interest rates tend to increase with the LTV rate of your mortgage - so you will be paying considerably more interest than if you had saved a 10% deposit. Most rates I’ve seen are variable, too, so if the base interest rate - which is currently at rock bottom - shoots up, your mortgage repayments could increase significantly, too.
Each of these schemes has its own benefits and disadvantages, and each will suit different circumstances. For all of them, it’s important to feel sure that you’re ready to take on the responsibilities that come with owning a home, and that you feel happy and confident in your ability to make your monthly repayments.