With Rightmove reporting increased demand for houses and property listings at an all time low. First time buyers are struggling to save the deposits which lenders are currently insisting on to purchase in today’s market. So the alternative is to buy via a Shared Ownership scheme.

The housing market isn’t moving and this is creating a build up of first time buyers who would are still trying to get on the property ladder this isn’t going to change and demand will build. Click n go Mortgages have seen a huge increase in the number of new enquiries this month.  Owning your own house is still seen as life goal for most people and the thought of renting and paying someone else’s mortgage is just not cricket.

To quote Margaret Beckett “first-time buyers should snap up bargains amid signs of a property market ‘upturn’.The Bank of England has reduced interest rates to help stimulate the economy and prevent a deeper and longer recession. Before you fall in love with a house and pay a holding deposit sometimes required by some builders you should get your shared ownership mortgage approved.

First time buyer’s looking for shared ownership properties have quite a few options here is a few of the shared ownership mortgage rates and some of the lenders criteria available today that might help you make your decision a little easier.Abbey with a 10% deposit available for house, however if the property has been built in the last 12 months you will need a 20% deposit. There is a five year fixed rate at 7.09%. You need a 30% deposit for a new build flats.

Nationwide a 15% deposit required for houses and a 25% deposit for new build flats. Current rates are 4.19% this is for a 2 year tracker or a 4.59% for a 2 year fixed. They do not accept most benefit incomes, however they do accept 100% of your current P60 figure regardless of whether basic or overtime time and bonuses.

Leeds requires a 10% and currently offers a 7.89% for a 3 year fixed rate. Currently have very good service levels which can be a major factor in this market.

Halifax requires a 10% deposit this will secure you a mortgage rate of 7.49% fixed for a 5 years. You could reduce this to a tracker rate currently 4.09% by increasing the deposit to 25%.

Woolwich a 10% deposit is required, the current rates available is 6.79% five year fixed rate. This fixed rate is a very popular product in today’s market; this in turn affects the service levels.Theres is a lender offering a 100% shared ownership mortgage, the maximum rate is 13.75%. This applies to people who have had 3 County Court Judgements (CCJ’s) in last 3 years. There is a slightly better rate of 12.75% Applies to people who have 2 CCJ’s in the last 3 years. The interest rate is also affected by whether you pay the mortgage fees, or whether they are included in the 100% figure.Appetite to lend plays a huge part in the lenders decision to offer attractive deals. It’s vitally important to speak to a broker who has access to the whole market and fully understands the latest products, criteria and service levels to ensure you get correct advice to suit you personal circumstances. No one wants to waste time and money falling in love with a property when you don’t even know if you can get a shared ownership mortgage.

If you want to know more about first time buyer schemes including shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

My partner and I are lowly first time buyers with a few savings, certainly not enough for a deposit. We rent our slightly shabby 2 bed house, which I long to decorate but don’t want to add value, and are slowly but surely paying off our landlords’ mortgage.

Many times we have been sat in a Bank or Building Society opposite a sympathetic but otherwise unhelpful Mortgage Advisor, who, after informing us that sadly we need a larger deposit and much larger salary, almost runs to the next awaiting couple.

We had heard the terms such as Shared Owneship Mortgage , and Shared Equity Mortgage and basically ignored them, assuming that it was all a con designed to rob us of our rightful place on the property ladder as fully fledged owners. But as time went by and our landlord raised the rent again I decided to put my pre conceptions aside and find out the facts.

My first point of call was our bank, who confirmed that they did not lend on these schemes, so my next contact was a Mortgage Broker. As the Broker explained the difference between the Shared Ownership Mortgage and Shared Equity Mortgage, I found myself listening with interest, then anticipation, and finally excitement; finally there was a way for us to buy our own property.

The Broker explained that if we would consider new builds we could buy a property without a deposit. Initially we would buy 75% of the property value, and buy the remainder over ten years. Because only 75% was required, our salaries were sufficient, and best of all no deposit was required. Apparently the Builder Shared Equity Mortgage has been around for years, to say I was overjoyed is an understatement.

Within a few hours our Shared Equity Mortgage  had been agreed in principal, we had vital information such the maximum we could borrow, and the monthly payments (which was not much more than our current rent). That weekend this couple viewed 3 developments (we actually had a choice), and we were treated with respect by the sales team, after all, we had our finances agreed! We settled on a gorgeous 2 bed terraced with a downstairs loo, heaven!

The moral of this story is that if you talk to the right person, who knows the market and who is familiar with the latest schemes, whether it be Shared Equity Mortgage, Shared Ownership Mortgage, or Open Market Homebuy you can have your very own home to decorate and slowly but surely pay off your own mortgage.

If you want to know more about first time buyer schemes, then contact Click n go Mortgages here.

It’s certainly going to be a tough time for first time buyers in 2009.

We still get a hundreds of people asking “Can we still get a 100% mortgage”. The answer is not for a property on the open market. But you can still buy a house without a deposit with a Shared Equity mortgage.

Most people seem to think a Shared Equity is the same as Shared ownership, it’s completely different.  With Shared Equity you own the property there is nobody else on the deeds. With these assisted buying schemes you generally take a mortgage out for 75% of the value of the property and the other 25% equity loan.  If you are buying a property to use as a home then in the long term the housing market is still seen as good for equity gains. The value of houses has increased by more than the rate of inflation. 2009 may well be all about First Time Buyers trying to find a deposit, or maybe a Shared Equity purchase if for you.

If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

Many people still want a 100% mortgage. Many people still think you can borrow over the value of your property; these mortgages were available up to 125 % of the value of your property. 100% mortgages are still available, but the market is extremly limited.

 The two deals that are available have a strict lending criteria. You have to be over 21, your income must be more than 25k you can only lend on repayment basis and it’s only for people who are buying. They will only lend you up to 100% of the mortgage. 100% mortgages have very strict credit rating criteria. Squeaky clean is the phrase that comes to mind. The other 100% mortgage lender is similar to a guarantor mortgage, except the property is the security for the 100% mortgages lender. The lender requires security of 25% of your parent’s mortgage.

What you need to know about 100% mortgages:

Apart from charging higher interest rates for 100% mortgages the other risk for the lender is possibility of negative equity. As no equity is placed within the property value, because there is no deposit, if house prices instantly decrease after the property is bought then no equity exists as a buffer. This means that if you need to sell your home the 100% mortgage taken out on the original value of the property would outweigh the property new value.

So you still need a 100% mortgage. What you need to be careful of is not overstretching yourself to far that you can’t afford to pay the bills. 100% mortgages are commonly used to help people get onto the housing ladder.

The obvious concern now is will you be able to afford the mortgage payments when you fixed rate comes to its end. Always consider a longer fixed period, this will hopefully give you time to adjust you finances to suit your commitments. 100% mortgages are still available and for someone with a long term plan and a well managed monthly budget they can still offer a way of purchasing your dream home.

100 % mortgages are a loan for the full purchase price of the property, lenders are not offering any more than this. 125% mortgages have all but dissappered for now.

100% mortgage choices are limited. Very few lenders offer 100 percent mortgages and the ones that do offer 100 percent mortgages have always charged a higher interest rate than they would for a mortgage covering a lower percentage of the purchase price. i.e. 97% or now more commonly 95% & 90%. 

As well as having to pay a higher interest rate due to the risk taken by the lender, you may be charged a larger higher lending charge premium (also referred to as mortgage indemnity guarantee MIG) than if you put some of your own cash towards the purchase. However, to help with your initial upfront fees, most lenders will allow you to add the MIG to your 100% mortgage. You have to consider that you will be paying interest on the MIG for many years.

There are now some mortgage lenders that offer 100% mortgages without charging a mortgage indemnity guarantee premium. These 100 percent mortgage lenders also can lend higher than standard income multipliers they are generally 4 times your income, however their interest rates for these 100 percent mortgages are again higher than a 97 & 95% mortgage.

If you are borrowing the maximum 100% mortgage, you should consider a fixed or capped interest rate mortgages, since these buy valuable protection against the risk of rising mortgage interest rates.