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.

Shared equity schemes seem to be the perfect way for developers and the goverment to get the hosing market moving again.

Struglling developers all over the country have mothballed developments, with millions of pounds of working capital tied up in empty properties. The government recently announced the purchase of 379 homes from Bovis for £18M. This works out at £47,500 per home a good deal for Communities and Local Government.

Bovis said its sales figures are ‘in line with expectations’. The house builder completed 1,817 homes during 2008, down 38 per cent from the 2007 total of 2,930. Private completions were down 47 per cent to 1,223.Social housing made up 33 per cent of sales, up from 22 per cent in 2007, and Bovis agreed ‘a number of deals’ with the Homes and Communities Agency to sell unsold stock to housing associations.

If more builders took the same initiative to off load housing stock at a discounted price that still made them a profit and strengthened their balance sheets maybe more Shared Ownership & Shared Equity properties would be available sooner rather then later.  If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

With all the doom and gloom over housing market, you might be surprised to know that this is a fantastic time to buy a house via a Shared Ownership & Shared Equity scheme. Even if you have bad credit. You can get a great mortgage deal with the following lenders……Let’s look at a few high street lenders and an adverse (bad credit) lender that have shared ownership mortgage and shared equity mortgage deals available in today’s market.

Abbey are very selective in which developers they have on there approved panel. There rates and fees are similar to the two below, but if your developer is not on the panel then you have no option but to try another lender.

Nationwide accept every developer. They also allow brokers to reserve the rates immediately. Now that may not sound like a big deal but in todays fast pace ever changing mortgage market that is crucial. There tracker rates for shared ownership and shared equity mortgages are competitive, if you are prepared to take a risk on an ever fluctuating Bank of England base rate.  Halifax this is the lender that likes to say yes, they have some of the most competitive mortgage products available. Each application is assessed on an individual basis, this formed around property type and location, employment and ongoing commitments and credit history.

You still need to put a minimum 10% deposit down dependent on credit score for shared ownership purchases. For shared equity mortgages you can secure a 100% mortgage for your share.

100% Bad credit mortgage lender but ONLY for Shared Ownership purchases. Yes there is still one out there but no widely know to the public. They assess each and every case based on its individual merits. It’s based around affordability and your ability to pay the mortgage. The main criteria is base upon your ability to maintain the loan, if your gross income is over £25,ooo 50% of your net monthly income is calculated towards your monthly mortgage payment and rental commitment reducing to 45% for income that are less than £25,000. This shared ownership mortgage product is a LIBOR rated tracker product. Currently you must not have any more than three de-merits (County Court Judgments, Defaults, and Late payments).

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

First time buyers have been treated unfairly in recent years. They have been encouraged by lenders to borrow more than they can afford, obtaining loans equating to over 5 times their incomes, and the price of starter homes available to them have soared, partly due to the Buy to Let Market investors.

It is about time that First Time Buyers are offered real help in getting on the property ladder; they deserve the opportunity to buy their own home, at a price they can afford without moving miles away from their chosen location.

Shared Ownership Mortgages and properties are one solution. These properties are offered for sale by Housing Associations who act as agents for the Government. Buyers buy a % of the property value, typically 25% to 50%. A shared ownership mortgage is raised for the buyers share and a nominal rent is paid to the Housing Association for the remaining share. The deposit required is typically 10% of the buyers share, for example;

Property Value £200,000

Share purchased 25% (£50,000 mortgage)

Deposit required £5000

Income required approx. £14k – £20k

Thanks to the Shared Ownership Mortgage scheme, low to middle income earners have a real opportunity to purchase their own home. Even in London, where first time buyers have been prevented from buying due to soaring prices, properties are available on a shared ownership basis. This much more attractive option, offering more security than the rental option.

For higher income earners New Build Shared Equity may be the solution. The Government is not involved in the scheme. Builders and Developers offer developments where purchasers again buy a % of the property value, typically 75% – 85%. The Builder retains the remaining share, and lenders do not request a deposit from the purchaser. No rental is payable to the Builder, however the remaining share must be bought from the Builder within 10 years or when the property is sold, whichever is soonest.

The Shared Equity Mortgage has another distinct advantage, because the lenders are only lending maximum 85% of the property value, the interest rates available are much more favourable, typically 1.5% lower than if the purchaser placed 10% deposit on a normal property on the open market.

Not all lenders offer Shared Equity Mortgages and Shared Ownership Mortgages, some lenders offer one type and not the other.  It is wise to seek advice from a Mortgage Broker to ensure the mortgage goes through smoothly with a relevant lender.

Of course both the above Shared Ownership Mortgages and the Shared Equity Mortgages are available only for new builds. If you want a property on the open market you have no option but to fund a deposit, currently 15% is realistic and cannot usually be raised as a loan.If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

First Time buyers are to be given a helping had to the tune of £400m towards Shared Equity Mortgage Schemes. The amount promised by the Government has risen from £300m in September 2008. Housing Minister Margaret Beckett stated that the Government are determined to provide “real help” for families in the current difficult economic climate.

The scheme is designed to assist households with incomes below £60,000 buy a brand new home.  A deposit of up to 30% will be made available via a Shared Equity Mortgage Loans, funded partly by the Government and the Developer, a mortgage will be raised for the remaining share. The loan will be free of charge for five years.

Many developers offer a version of the scheme already, known as New Build Shared Equity Mortgages, and more than 130 developers have agreed to take part in the new initiative. It is no surprise that the house building industry was one of the first to be affected by the economic climate. The scheme’s support will undoubtedly be welcomed by developers and their employees and prevent job losses.

Mrs Beckett said: “For many young families who aspire to own a home, the difficulties in the housing market have made the step on to the property ladder that bit harder.” She added: “This deal will give them more support and put their dream of becoming home owners within reach. At the same time, this scheme will also help developers to weather the tough times in the market, by protecting jobs and helping to keep business going.”

First Time buyers who prove eligible will be able to apply for the scheme as early as the first quarter 2009.

But the Royal Institution of Chartered Surveyors (Rics) warned that the scheme would only be successful if the banks gave out mortgages to applicants for the scheme.”

The attitude of mortgage lenders will determine if the scheme is a success and to work effectively the major lenders must be prepared to give people mortgages to buy their share of the property,” said James Rowlands, Rics policy officer.True, but as many lenders have been lending on a version of this scheme since the late 1980’s,  as well as shared ownership mortgage schemes, it would appear that they do have the right attitude, they would be foolish to ignore what will become the “norm” for first time buyer borrowing.If you want to know more about shared owenrship & equity mortgage schemes, then contact Click n go Mortgages here.