First Time Buyer Mortgages with a £5,000 deposit

[TheMortgageSquad]

Accord Mortgages launch a new residential mortgage where you only need a £5,000 deposit.

The mortgage applies to residential new first time buyer purchases only (not for those who have previously purchased, not for buy to let properties and not for remortgages).

Who's it for?

• At least one applicant must be a first time buyer (defined as having never owned a property in the past) and no background properties on the application
• Contractors are eligible for this mortgage with Accord being a contractor friendly lender
• Applicants with a minimum £5,000 deposit
• Applicants must have a good credit score for lending above 95% LTV

What else do you need to know?

• 5 Year Fixed Rate product
• Maximum age of 70 at the end of the mortgage term
• Available for loan to values between 95.01% and 99%
• Available for house purchases above £100,000 up to £500,000
• Minimum loan above £95,000
• Maximum loan £495,000
• Maximum loan to income (income multiple) of 4.49 x income (sole or joint)
• Only available for Capital & Interest mortgages (repayment)
• Subject to affordability, criteria and credit score

Excludes:

• Purchases of flats, new build properties and properties in Northern Ireland
• Not available for applications where any applicant does not have permanent right to reside in the UK

This is great news for first time buyers! In today’s climate, raising a deposit is a key challenge for many wanting to step onto the property ladder for the first time, and with this new, innovative mortgage it will really support more first time buyers being able to open the door to their first home!

[eek]

And a low mortgage rate of only 5.99%

Mind you even with a deposit of 25% their rate is significational higher than others mortgage providers....

[northernladuk]

Reading some articles on on this, other professionals in the industry are pretty cool on it and some downright negative.

The contractor industry truely is in dire straights if we can't afford more than 5k for a deposit.

But cool sales pitch bro...

[jamesbrown]

The contractor industry truely is in dire straights

The contractor industry or the mortgage hawking industry?

[eek]

Reading some articles on on this, other professionals in the industry are pretty cool on it and some downright negative.

The contractor industry truely is in dire straights if we can't afford more than 5k for a deposit.

But cool sales pitch bro...

You never know there may be someone on here with no savings willing to pay 1.5% extra for 5 years rather than saving for 6 months...

[cojak]

The rubbish rate should put off all but the most desperate contractor.

I’m not impressed by the product or TheMortgageSquad for advertising it, and if this or anything like it happens again there will be consequences.

Edit: TheMortgageSquad has contacted me and informed me that he has been a regular in a previous guise and was not advertising in this instance.

[TheMortgageSquad]

The rubbish rate should put off all but the most desperate contractor.

I’m not impressed by the product or TheMortgageSquad and if this or anything like it happens again there will be consequences.

I was just sharing industry news, I'm not sure why you have taken offence to me specifically?!

This is not something which is specific to The Mortgage Squad, it is a mortgage product offered by a mortgage lender and 'news' which I thought was worth sharing.

Whether it is a product that is of use to any contractors or not, the fact it exists is an interesting topic alone as it could help a number of people, contractors or otherwise, get onto the property ladder. More people buying property could give the housing market an injection which impacts everyone who owns a property, specifically those looking to buy and sell in the not too distant future which could be contractors regardless of the size deposit they have to put down or even whether they need a mortgage or not.

[TheMortgageSquad]

And a low mortgage rate of only 5.99%

Mind you even with a deposit of 25% their rate is significational higher than others mortgage providers....

The best rates on the market for a 5 year fixed rate with a 40% (!!) deposit are around 4.15% at the moment, so yes, this rate is a fair bit higher but on a £500,000 property, the deposit requirement to get those kind of rates are £200,000, the £5,000 requirement for this new mortgage is obviously significantly less.

We would always recommend to clients that putting down a bigger deposit, even 5% or 10% would always be beneficial to the interest rate they could obtain and therefore the overall interest they pay, but nonetheless, this product could serve a purpose for some who may be struggling to save at the moment or if a specific opportunity to acquire a property they would ideally like presented itself before they were able to save the ideal deposit they would like to put down.

[eek]

Got to say the only thing I’m seeing here is reasons to go elsewhere.

If this is your sales pitch good luck …

[sreed]

FWIW I think it’s a good product for those FTBs who can’t (or don’t want to) put in a bigger deposit. The more products there are in the market, the more choice borrowers have.

There seem to plenty of guardrails to minimise the chances of negative equity - no new build, no flats, no NI, 4.5x max income multiple, term capped to 70 (plenty of lenders will go to 75 and 80).