Hello all

So here is a genuinely viable way for somebody to get on the property ladder with virtually no savings/funds at all; we have arranged a few of these recently. Most of the lenders who offer 95% mortgages (the maximum available in the current market) require that the 5% deposit that the customer puts in comes from savings or a gift from a family member or someone close to the customer. There are 2 mainstream lenders who accept the customer borrowing the deposit – and associated fees too if they wish.

Typical example: customer wishes to purchase a property for £150k, 95% mortgage will be £142,500 and we can get monthly payments at £547 on that with a 2 year fixed rate at 2.99% with free survey, no arrangement fee and also £250 cashback on completion. They can arrange a personal loan for the deposit of £7,500 with a major bank over 5 years at a typical rate of 3.9% right now with monthly payments of £137. They could even include their legal fees in that if they wished.

So for a total monthly outgoing of £684 a person can purchase and own their own home without having a deposit or even money to cover the costs if needs be! Great for young people who haven’t the capacity to save!

*Mortgage and credit facilities are subject to status. Your home is at risk if you do not keep up the repayments on a mortgage secured on it.

Best regards,
Simon Balderson
Head of Mortgage Services