are showing some weakness at the moment, the task of scraping together a sufficient deposit is still a daunting one for many of us. With the average home costing £279,569 according to the latest Halifax figures, a standard 15 per cent deposit will require savings of almost £42,000., and even a select few that will lend to you with no deposit at all. Here we explain how these work, and the positives and negatives of taking on one of these loans.
So far, his firm has only seen a small number of applicants for the mortgage, however. For many potential buyers, he explained, “I don’t believe you’ll be able to buy the house you rent”. In his experience, making use of the scheme means buyers often need to downsize or relocate. Other than Skipton, the only 100 per cent mortgages on the market require a guarantor, so while the borrower doesn’t put down a deposit, they need a family member who can. The Barclays family springboard mortgage and the Lloyds lend a hand mortgage work by getting a family member to put some of their savings down as collateral for the mortgage, without actually handing over money to the borrower.
Barclays offers a five-year fixed rate, while Lloyds has a three-year period. Some building societies, including Mansfield Building Society, Buckinghamshire Building Society, and Beverley Building Society also offer mortgages up to 100 per cent LTV based on family assistance. Remember that if you fail to make mortgage payments, you could risk losing your house, and your family member could risk losing the money or equity they’ve put in to back you.
The disadvantage of a smaller deposit is that your borrowing will be more costly. The more money you put down the lower the