In many parts of the country, such as Kent, house prices still seem to be spiralling out of control. Consequently more and more young people are finding it difficult to get on the property ladder without help.
If you can’t afford the full cost of a new home, don’t despair. Find a good mortgage broker in Kent and talk over your situation. There are quite a few solutions to help you, depending on your particular circumstances.
• Shared equity mortgage. This kind of mortgage is designed for you if you can’t afford the full cost of a new home, and don’t mind giving up a share of the equity so that you can at least get on the ladder. Under this scheme, the borrower makes lower monthly repayments in exchange for the lender taking a share of the equity. There are over 100 lenders in the UK who offer shared equity deals – so ask your mortgage broker in Kent to help you find the right one.
• Parental help. Many first-time buyers who can’t afford a property on their own look to their parents for help. This help can range from the parent contributing to the deposit, to deals in which the parent guarantees the loan, through to deals in which the parental income is taken into account along with that of the buyer. There is also a type of Offset Mortgage in which the parents’ income can be used to reduce their offspring’s payments. The mortgage broker in Kent can explain more about these deals.
• Student mortgages. This is a particular type of “parental help” mortgage. Students at university can find it advantageous to arrange a mortgage on their accommodation, rather than pay high rents and have nothing to show for it at the end. Students usually arrange this is conjunction with their parents – obviously the parent would need to guarantee the loan. Student mortgages can be arranged for up to 90% of the value of the property – again, a mortgage broker in Kent can tell you more.
• Joint mortgages. Another possibility is to get a mortgage with a friend, or more than one friend – more and more people are doing this. Most lenders will allow up to four borrowers to get a joint mortgage. If you are interested in a mortgage of this kind, make sure you discuss it with a mortgage broker first. You should only enter into this type of arrangement with a very watertight legal agreement, with each party having his or her own solicitor.
• Shared ownership. These are usually run by Housing Associations. Borrowers buy a share of the property – usually between 25% and 75% - and pay rent on the rest. You can have the advantage of the increased equity on your share. A mortgage broker in Kent can tell you about how to get a mortgage for this type of arrangement.
With house prices continuing to increase, more and more people will need this type of arrangement, and lenders are responding accordingly with different kinds of mortgage. So whatever type of arrangement you want to enter into, talk to your mortgage broker in Kent and you are likely to be able to find a mortgage to suit you.
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