What mortgage options exist for first time buyers?

With house prices continuing to rise it is becoming more and more difficult for First Time Buyers to get on the property ladder.

A lot of first time buyers are now turning to the Bank of MUM & DAD for help or Grand Parents.

They are normally in a position to provide their Children / Grand Children with a deposit but are asked to confirm that they will not have a financial interest in the property.

first time buyers signSo that money has to be a non repayable gift.

Below is an option potentially available

Example:

The Property is Valued at £150,000. First Time buyers borrow 100% of the purchase price (£150,000)

The Lender applies an interest rate fixed for 3 Years over the mortgage term 25 years (maximum).

The Parents / Grand Parents or other Helper place 10% of the purchase price (£15,000) into a Bank Account for the first three years of the mortgage. This account is an interesting bearing account.

At the end of the three years the money is returned to the Parent(s) / Grand Parent (s) or other Helper(s) with interest as long the mortgage payments have been made on time and in full.

The Mortgage then reverts to a Tracker rate with no penalties meaning that you are free to look at what other options are available to you (This would be dependent upon the Value of the property at that time and your financial circumstances).

The Benefit to the person placing the deposit into the account is that they are not considered to be guarantors and the buyers have full ownership of the property at all times.

This is a alternative option available and but as is the case with all mortgages you will meet the full application criteria which will include details of income, details of any outstanding credit commitments and you have to have a clear credit profile.

So what will the mortgage payments be ?

So based on a Purchase Price of £150,000 and a mortgage loan of £150,000 over 25 years and a current fixed rate of 2.95%

The Monthly Mortgage payment would be £707.42.

At the time of writing this article the Lender will provide you with a FREE mortgage valuation of the property along with no lenders arrangement /booking fee.

It is advisable that all parties take independent legal advice.

Manchester Mortgages have been providing mortgage advice to clients for 18 years and are now arranging mortgages for our original clients children and we are able to provide solutions to most situations.

Buying a house in Prestwich

Increasing investment within the region’s food and drink scene has induced humans to sit up and take note of Prestwich, say mortgage broker specialists Manchester Mortgages (see http://manchestermortgages.co.uk/prestwich-mortgage-broker-advisor/).

North of Manchester city centre and bordering Heaton Park, it’s miles one of the maximum ideal commuter spots.

Laurence Juster, from Michael Herwald & Co property retailers, stated: “Prestwich now has a ‘buzz’ about it with wine bars like Cuckoo and all of the Shapes which might be increasingly more popular. And restaurants like Croma, Solita, and Tao’s all provide a taste of the world’s meals on our doorstep.”

With a number of extraordinary faculties and neighborhood parks it’s a success with households too.

Stuart Pearson, from Pearson Ferrier, said: ““There are always matters going on like Festwich unfastened tune pageant, Prestwich Carnival and Clough day. And there are a number of nearby societies and sports activities golf equipment too.”

Travel time?
Tram: Hopping at the tram at both Prestwich or Heaton Park stations can get you into Victoria teach Station in only 16 minutes.

Automobile: using is always a gamble inside the morning, with rush hour visitors absolutely adding time on your adventure.

However on appropriate day you could be within the metropolis centre in as few as thirteen minutes.

Bus: in case you don’t own a automobile, you gained’t be quick of a bus or two both. Catch the 97 at the Longfield centre and you could be at Shudehill Interchange in 24 minutes.

The a hundred thirty five additionally runs down Bury old street/Cheetham Hill street and takes a little longer, simply the 26 mins.

Cycle: It might not have the canalside surroundings, however heading down Bury New road will get you there simply as brief. It takes just 18 mins to get to Victoria from Prestwich city centre.

Residence fees?
depending on what you’re seeking out expenses in Prestwich and the encompassing areas can vary substantially.

And with growing popularity, they’re simplest set to upward thrust.

Boasting a burgeoning food and drink scene, it’s turning into a belongings hotspot – especially for families priced out of different areas.

The common house in Prestwich is presently £211,382 – an upward thrust of greater than £3,000 over the past three hundred and sixty five days.

Terraced residences inside the vicinity are a truthful bit cheaper though, going in the marketplace for £one hundred fifty five,662 on common.

What do they say?
Instructor Adrian Ellison, forty seven, said: “Prestwich usually changed into an exciting place to be, however right now its social, leisure and cultural milieus are burgeoning with marvelous alacrity.”

Every other resident, Neil Darlington, forty four, a commercial enterprise analyst, introduced: “As someone who commutes to Manchester town centre i would say that transport is remarkable.”