Many affordable homes are available to first time buyers. The Scottish government offers the Low-Cost Initiative for First Time Buyers scheme (LIFT), helping people get on the property ladder. However with current uncertainty in the market and tighter lending criteria, mortgages being taken up are very low. There are around 280 homes currently lying empty, available under the shared equity scheme.
There is a lack of confidence in the market as prices have been dropping over the past year and are predicted to drop further. However many people are still buying as it still makes more sense than renting. If you feel like this is you there take the opportunity to see what is available to you, many selling homes are willing to take offers, so negotiate and you may get yourself a good deal, saving you money in the long run. If you have an immaculate credit history and can afford the minimum 15% deposits you could be one of the few to become a homeowner this year.
The government takes a stake in the property by taking an equity stake between 20 and 40%. The buyer then makes up the remained and only needs to repay the government when they decide to sell the home. The government gets their investment back at the current market rate, whether it has dropped or increased.There are currently homes available in Glasgow, Edinburgh, Perth and Kinross. The scheme is available through other ‘social landlords’ throughout Scotland including the highlands. First time buyers can find out what areas have homes through a number of methods, the usual estate agent, internet research or you could take the pain free option of using a mortgage broker.
Check to first of all see if the mortgage broker supports the lift mortgage scheme. There are many good mortgage brokers around, look for one that will search the whole market and without a fee so you can ensure you are getting the best deal without spending a penny. So whether you are looking for a mortgage or would just like to find out what is available to you without the cost and the leg work, a mortgage broker is the way to go.
