A Joint Mortgage – This is whereby you look to purchase a property with either, parents, friends or a partner which will help ease the financial pressure. You may want to take independent legal advice so that an agreement can be drafted such as who is responsible towards the contribution of payments, or if someone wants to move out what happens, or if the property is put for sale what share will be provided to whom. Relationships can change over a period of time, and it may be an idea to deal with these aspects first rather than in hindsight.
Beneficial joint Tenants -The property in this instance is owned jointly, in the unfortunate event if either party passes away then the share will go to the other owner. No one owns a specific share in the property.
Tenants in Common – Property is owned jointly, however in this instance you will own a share in the property, you can sell or give this share away or leave to someone else on death.
Parental help – You may be able to have some form of financial parental support by way of deposit. They do not own the property but can assist you. Your Parents may even act a as a Guarantor to your Mortgage which may help you receive a better rate or terms from a Lender.
Rates and Charges – Lenders initial rates may seem attractive, but do consider the arrangement fees, set up fees, redemption charges, interest rates, default rates and penalty fees. It is important to get the right advice from your Mortgage Broker and may be even Legal Advice from a Solicitor.
Shared Ownership–You can purchase a share in a property, this is normally a scheme run by housing associations to help people get on to the property ladder. You will normally pay rent on their share of the property as they do NOT live with you. Over a period of time you can increase your shared ownership in the property to 100% whereby you then own the full property. This is also known as ‘staircasing’.
First Buy Shared Equity – This is a scheme that was introduced in 2011 and available to aFirst Time buyers looking to purchase a new Build property. Here you own the property outright, you normally pay a 5% deposit, obtain a 75 to 80% shared equity mortgage and agree to pay back the balance of the 15-20% shared equity loan once you sell the property or by a certain time period.
Home Buy Schemes – Government scheme available to household earning less than £60,000 per annum, subject to set criteria.
HomeBuy Direct – Can help you buy a property on certain developer sites by providing a loan of up to 30% of the value of the property.
New Build HomeBuy – Helps people buy a share in a new build property and pay rent on the remaining share
Rent to HomeBuy – Allows tenants to pay 80% or less of the market rent, so that a deposit can be saved up.
