Have you heard of the 99% mortgage?
Let’s discuss the new first-time buyers’ 99% mortgage with £5k deposit by Accord Mortgages.
As you might have guessed from the name, a 99% mortgage allows you to take out a mortgage with only a 1% deposit. This could be a fantastic opportunity for those struggling to buy a house. Think renters who already pay what they would in rent. Or those who can cover repayments but can’t save enough of a deposit in time to buy a house.
With only a £5,000 deposit, potential buyers might be able to purchase a property valued at up to £500,000. Available to first-time buyers only, borrowers could take out a five-year fixed-rate mortgage at 5.99 per cent.
Yorkshire Building Society’s Director of Mortgages, Ben Merritt, said the society’s research found it could shorten the time first-time buyers need to get mortgage ready. He added that it could help to encourage a “level playing field for those who don’t have financial support from their families to fall back on.”
Affordability must be addressed when taking out such a large mortgage. Issues such as losing your job or property value falling mean you will be in debt to the bank even if you sell your house.
Due to the nature of these loans, speak to us today to see if they would suit you.
Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. You may be charged a fee for mortgage advice.
The new mortgage is available through Accord Mortgages, the lender’s intermediary-only arm.