For example, Herts County Council is running a brand-new scheme together with Dacorum Borough Council. It will give the local first-time buyers a chance to buy a house with just 5% deposit. How’s that possible? No lender would offer you 95% mortgages nowadays. Well, the county will come up with the remaining 20% of the deposit in a form of guarantee. This will help the lender to reduce the risk. The guarantee will be available for the eligible buyers on first-come first-served basis, so don’t miss the opportunity and act now.
If you’re a first-time buyer, it’s a good idea to speak with your local council’s housing department to see if you are eligible for any help. Also, contact your Citizen Advice bureau – they might have a few ideas. The Herts Council has committed £2 million to this scheme and if successful, it’s expected that many other councils will follow suit.
Great news, but what if you’re a landlord?
According to a recent research carried out by the Landlord Centre, buy to let mortgages remain attractive for the UK landlords. With the residential rates going up steadily, the rental market remains strong and prospective landlords looking to take out new buy to let mortgages, can do with quite a confidence.
Fixed landlord financing packages have fallen to the average rate of 4.82% and the good news is that lenders keep cutting their fixed rates. For example, the Nationwide Building Society now lends to the landlords at an amazing 3.99% two-year fixed rate. If you manage to find a cheap property at an auction and secure the financing at below 4%, investing in brick and mortar becomes more attractive than ever.
If you can come up with a 40% deposit, there are even better buy to let mortgage deals around. The best I’ve seen is a 3.6% rate from Principality Building Society but do shop around and check if you can also find a deal that offers you cash back or free legal support.
Whether you’re a landlord or a first-time buyer, the property market in the UK looks like a good place to be.