The range of low-deposit, flexible mortgages on the market makes now a great time for first-time buyers, according to Chartwell Mortgage Services, in partnership with Linden Homes.
Scott Howitt of Chartwell Mortgage Services said, “In my opinion, first-time buyers are in a pretty good position to start the homebuying process right now. Some mortgage products on the market mean you could reserve a new home with no deposit. I simply wouldn’t have believed that a few years ago.
“Ultimately, lenders want to lend! That's why we have seen a rise in mortgage products that really boost opportunities for first-time buyers. With low deposit options, rates starting to slowly decrease, and rental history being factored into affordability for some, we’re experiencing good conditions to buy. However, because of the range of products available, it’s more important than ever for buyers to speak to a mortgage adviser before viewing homes. Buyers might be able to borrow more than they realise.
“When selecting a mortgage, my guidance for first-time buyers is to take the longest term possible. For most, that's 35 years. A mortgage adviser will then work with buyers to develop a repayment strategy to improve their rate over time. The monthly mortgage payments need to be affordable when first-time buyers are settling in, buying their furniture and establishing the cost of bills. But when comfortable, we encourage buyers to slightly increase their monthly payments. An increase of £100 a month has an impressive impact on the rate.
“For example, using a 5% deposit mortgage, first-time buyers could secure a home worth £250,000 with a deposit of £12,500. Using a 35-year term and a 5.41% fixed rate, the monthly costs would be approximately £1,260.52.”
Appreciating the financial challenges that come with buying a home, Linden Homes is supporting buyers in Crewe at its Leighton West development, Foxglove Place. It has launched a pre-showhome offer providing buyers with a 5% deposit contribution, opening up the option of a lower deposit mortgage for more.
Ethan and Martha, first-time buyers who have recently reserved their home, using the pre-show home offer, commented: “With us both currently living with parents, we’ve been able to save up without any help in about 18 months. It’s been our one goal to buy a house together, so we just dedicated ourselves to making that happen. We cut out on some nights out and put everything we could into savings. We are really looking forward to making it all a reality and moving into our new home.”
Foxglove Place is Linden Homes’ first development in Crewe, offering a range of two, three and four-bedroom homes in the leafy suburbs. Prices currently start at £234,995. Find out more here.
