Now we have the UK’s biggest mortgage lender HBOS, being forced into a merger with Lloyds TSB – what is the world coming to ? The largest insurance company in the world needed a $75 billion bail out loan from the US government. Mr Hagger also stressed that the danger with high LTV mortgages is the risk of falling house prices, meaning the borrower would be left with a high LTV balance that they can't find a lender to take.I have said before that we are in the midst of historic times, but I am not sure many of us realised just how historic.īanks that survived the Wall Street Crash of yesteryear have not made it through the credit crunch. 'But they should be aware that if repayments are not maintained then the bank won’t release the funds back on the third anniversary. Meanwhile, Andrew Hagger of Moneycomms, said: 'The family members will like the fact that they can help their children with their first home purchase knowing that they will get it back after 3 years. To receive updates on the progress of these homes you can register your interest on the Starter Homes website. Starter Home Initiative - A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. 'First dibs' in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones. Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can save up to £4,000 a year and the Government will add 25 per cent on top. Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. The loan is on top of a normal mortgage but it can only be used to buy a new build property. Help to Buy equity loan - The Government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home. 'So a guaranteed fixed return for three years at a fantastic return will no doubt be enticing.' 'Those borrowers with little to no savings for a deposit will no doubt be struggling, while their parents may well want to help their children get their first home but are hesitant to relinquish their hard earned savings. She said: 'The brand new Lend a Hand mortgage from Lloyds Bank has been competitively priced and will no doubt grab the attention of first-time buyers looking to get on the property ladder. Rachel Springall, finance expert at Moneyfacts, said the savings rate at 2.5 per cent is 'table topping'. You can check out our guide to the best first-time buyer mortgage deals here. You may also need to provide documents like utility bills, proof of benefits, your last three month's payslips, passports and bank statement.Īnd while you might be tempted to get a mortgage without a deposit, they tend to be more expensive than other deals, so you could be better off saving up instead. Remember, that you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks, and looking at your credit file. You'll also have to decide on if you want a fixed-deal where the interest your charged is the same for the length of the deal or a variable mortgage, where the amount you pay can change depending on the Bank of England Base Rate. If you're getting confused by all the deals on the market, it might be worth you speaking to a mortgage broker, who will help find the best mortgage for you.Ī broker will typically cost between £300 and £400 but could help you save thousands over the course of your mortgage. Websites like Moneysupermarket and Moneyfacts have mortgage sections so you can compare costs and all the banks and building societies have their offers available on their sites too. IF you have or haven't got a deposit lined-up to buy a home, shopping around for a mortgage is the same.

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