I don’t have a large a deposit, can I still buy a home?
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Our professional team of mortgage brokers have more than 50 years of collective experience.
We’ve been providing advice to the residents of Torbay, South Devon and beyond for a long time and I don’t think there’s a question we’ve not been asked!
We’re passionate about supporting our clients to help them buy their perfect home or assist with refinance to improve an existing property.
And our service covers everyone from a first-time buyer, a home mover, later life lending as well as anyone purchasing or re-mortgaging an investment property or requiring commercial funding.
So, if you’ve got a question relating to property finance, it’s more than likely that we’ll have an answer.
Here’s some of the common questions we’re currently receiving. If you think we can help you, just get in touch.
Can I buy a property with a small deposit?
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Current property prices in Torbay, and a shortage of property coming to the market, can make buying a home challenging.
Add to this the deposit needed to buy a home and, especially for first time buyers’ that’s another hurdle to get over.
The mortgage guarantee scheme announced in the recent budget means 95 per cent mortgages are once again being offered by some lenders.
However, it may sometimes be more advantageous to try and secure a ten per cent deposit, or more, to unlock better mortgage rates and therefore a lower monthly cost.
Help to Buy
This scheme is for new build properties and now limited to first time buyers.
However, it offers an equity loan of 20 per cent from Homes England with only a five per cent deposit required from the purchaser and the balance funded by a mortgage.
There’s a price cap for properties bought using this scheme, in the South West this figure is currently £349,000.
How does shared ownership work?
If affordability is more difficult, a shared ownership property might be the perfect solution.
As you’re only buying a share of the property – renting the remaining portion from the housing association who own the freehold – you’re likely to need a smaller deposit too.
The majority of these schemes allow a step up to property ownership with the ability to ‘staircase’ your ownership to eventually own the whole property if required.
Can I borrow more than my income would normally permit?
The simple answer is – yes!
This can be achieved via what’s know as a ‘joint borrower/sole proprietor’ arrangement; adding someone else to the mortgage but not the property ownership.
Of course, whoever’s being added to the loan agreement will be legally responsible - along with the homeowner - for the debt but, this can be a very useful method to boost the amount you can borrow.
How can I raise funds to gift a deposit for my children?
This is a very common question. If you need to raise funds against your home or perhaps against an investment property you own and gift this money to children or family so that they can purchase themselves, it’s often easier than you think.
Of course, you should always carefully consider the monthly commitment you’ll be taking on by raising debt but withdrawing funds from your property in this way is generally very easy to do.
And, your age does not have to be a barrier to securing a mortgage.
How many people are allowed on the mortgage application?
Some lenders will accept up to four borrowers and all of the incomes can be used to assess affordability.
I’m buying a property with an annexe, is that ok?
Many lenders are relaxed about lending against a property with an annexe.
Generally speaking, the lender will ask for confirmation that there are no plans for any sub-letting although some lenders are happy to agree a mortgage even if the property will be part used for Airbnb.