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| House prices are rising at such a pace in Northern Ireland, First Time Buyers are finding it more difficult to find property within their price range and (even more importantly), find a lender who is willing to lend them the money. |
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| 100% Mortgages |
| 100% mortgages - the choice of lenders is limited. As the name suggests you are borrowing 100% of the property value, therefore no deposit is required. Affordability plays a big part when lenders are making their decision as to how much they will lend, normally net salary is used and all commitments are subtracted e.g. personal loans, credit card debt, and in some cases petrol costs, car insurance etc. |
| Co-ownership |
| Co-Ownership is another option - the buyer owns part of the property and rents part from the Northern Ireland Co-Ownership Housing Association Ltd (Co-Ownership). Buyers take as large a share as they can afford to start with - usually 50% 62.5 % or 75%. They can then increase this share at any time (depending on affordability). The idea being that eventually Co-Ownership will be bought out completely. |
| Shared Ownership |
| There are other shared ownership schemes coming onto the market, which allow much higher borrowing capacity... even up to 6x income. |
| Guarantor Mortgages |
| Most local banks are willing to accept guarantor mortgages, this is where parent's income/financial status is used along with their child's income, in order to secure a larger loan amount. One particular bank is willing to lend - not on a guarantor basis, but as a joint mortgage. Affordability is worked out just like a normal joint mortgage, therefore the mortgage application is joint but the deeds do not have to be joint, making it much easier when selling or remortgaging the property. |
These are just a few ideas for getting onto the property ladder. What we would recommend first, before you even start to look at properties, is to make an appointment to get Budget Advice, so that you know what price range to look at and more importantly how much your mortgage will cost each month.
Contact us for more information on FIRST TIME BUYER MORTGAGES
Your home may be repossessed if you do not keep up repayments on your mortgage. Our typical fee for mortgage advice is £299, although the precise amount will depend upon your own circumstances.
Information and/or advice intended for UK residents only. Non-UK residents please contact us for further information. |
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