Some FTBs with only a 5% deposit again have realistic mortgage options in addition to shared equity.
Ray Boulger comments:
"John Charcol is delighted to exclusively offer for FTBs with only a 5% deposit thinking of buying in England and Wales two very innovative, but very different, mortgage options, which may allow their dreams to become a reality. One of these new mortgages requires at least one family member to be involved and has a variable rate of only 3.95% and no arrangement fee. The other requires no family involvement and is a fixed rate of 6.49% until 2015 with a very low arrangement fee of £195.
"One impact of the Lehman debacle nearly three years ago was a freezing of the wholesale money markets, causing banks and building societies to beat their biggest ever retreat from mortgage lending. This resulted in the collapse of net mortgage lending from £109bn p.a. in 2007 to only £8bn last year. One specific impact was that lenders virtually withdrew from offering high Loan to Value mortgages and as a result many would be FTBs have been unable to enter the property market, even though their monthly payments would in many cases have been comfortably affordable.
"This has had a major knock-on effect on the level of activity in the property market as without new buyers entering the market at the bottom it becomes much more difficult for those who want to do so to trade up, although the impact has been partly mitigated by increased purchases from Buy to Let investors, who are providing properties for frustrated potential FTBs to rent. Details of these two new mortgages are as follows:
