Mortgage options naturally change primarily the percentage of a deposit required is the main generic change in types of mortgages available since the credit crunch took hold.
10...25...40% Deposit Required
Zero percent mortgage have almost disappeared, there are currently only ten deals available however your credit rating would have to be perfect and more than likely have a high salary and or a partner.
Other low deposit mortgages have dropped drastically right up to those who have a 25% deposit. Mortgage lenders are becoming less competitive as they carefully pick only those with gleaming credit records. The lucky ones among us though who can afford a 40% deposit do have more choice than a year ago and this segment of the market has seen a large increase in deals available.
Other options...can a family member help
If you have a family member or close relative who is willing to take an equity stake in the property you can get over the hurdle of needing a deposit at all. A family equity loan means you keep 100% ownership of the property and the family member can help you get your first property as well as make a profit from their investment should it be sold at an ideal time and as the property can’t be sold until the family loan has been repaid, there is security for the person/s taking the equity stake.
If not the government can help you
For those that can’t put up sizeable deposits there is the option of applying to a government support scheme in Scotland. The Low-cost Initiative for First Time Buyers or LIFT scheme will see the government take a stake in your property, normally 20-40%, giving first time buyers that much needed help to buy their first home. When the home is sold the government will receive their stake back at the sale price. Check the “social landlords” that are currently running the scheme to see if your area is eligible. Currently available in major cities including Edinburgh, Aberdeen those wanted a mortgage Falkirk and even the highlands.
Many mortgage brokers have included the above schemes to their library of lenders; if you go with a whole market broker you can get them to search the whole market and can check if they offer the above schemes. If you are looking for a Scottish mortgage then there are mortgage brokers based in Scotland that can provide the above services and often for free.
